Supply and demand biases in linear interindustry models

摘要: Abstract We explore the sectoral and aggregate implications of some endogeneization rules (i.e. on value-added final demand) which have been common in extended demand-driven Leontief model recently proposed supply-driven Ghosh model. Extended linear models are refinements that aim at endowing with additional general equilibrium feedbacks. detect these may give rise to allegedly pathological biased behavior. find or output not follow logical economically expected direct relationship underlying endogenous variables — namely, consumption Because their shared mathematical structure, whatever is seems be also has a symmetric counterpart These would good news for inner consistency raise doubts regarding validity empirical applications. To avoid such possible inconsistencies, we propose new simple sound economic interpretation.