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Input-output price indexes: forgoing the Leontief and Ghosh models

Title: Input-output price indexes: forgoing the Leontief and Ghosh models
Authors: de Mesnard, Louis
Contributors: Centre de Recherche en Gestion des Organisations (CREGO); Université de Haute-Alsace (UHA) Mulhouse - Colmar (Université de Haute-Alsace (UHA))-Université de Bourgogne (UB)-Université Bourgogne Franche-Comté COMUE (UBFC)-Université de Franche-Comté (UFC); Université Bourgogne Franche-Comté COMUE (UBFC)
Source: ISSN: 0953-5314.
Publisher Information: CCSD; Taylor & Francis (Routledge)
Publication Year: 2024
Collection: Université de Franche-Comté (UFC): HAL
Subject Terms: Input-output; Price index; Leontief; Ghosh; Price; [SHS.GESTION]Humanities and Social Sciences/Business administration
Description: International audience ; In input-output analysis, the Leontief and Ghosh models can be used to determine the price indexes of goods, which is convenient for analyzing inter-industry inflation. Their respective merits are debated, but both provide the same solution. We demonstrate that, contrary to common belief, it is superfluous to use the Leontief or Ghosh model to calculate price indexes: the price index vector alone satisfies the accounting identities without assuming constant coefficients. So, in contrast to the Leontief and Ghosh models, price indexes can be derived ‘instantly’, without a round-by-round process. Conducting research on price indexes deduce from the Leontief or Ghosh model becomes pointless: it suffices to study price indexes deduced from the data. We illustrate these findings with an application for France 2018. The same is demonstrated for prices with the data given in physical quantities.
Document Type: article in journal/newspaper
Language: English
DOI: 10.1080/09535314.2022.2164179
Availability: https://ube.hal.science/hal-04008405; https://ube.hal.science/hal-04008405v1/document; https://ube.hal.science/hal-04008405v1/file/L_and_G_prices_models_unnecessary-R4_Final_HAL.pdf; https://doi.org/10.1080/09535314.2022.2164179
Rights: info:eu-repo/semantics/OpenAccess
Accession Number: edsbas.6F807055
Database: BASE