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THE SUPPLY‐DRIVEN INPUT‐OUTPUT MODEL: A NEW INTERPRETATION BUT STILL IMPLAUSIBLE
Author(s) -
Oosterhaven Jan
Publication year - 1989
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1989.tb01391.x
Subject(s) - excuse , interpretation (philosophy) , function (biology) , production (economics) , economics , foundation (evidence) , production function , mathematical economics , computer science , econometrics , microeconomics , law , political science , evolutionary biology , biology , programming language
. In this reply, I argue that the production function proposed by Gruver provides a theoretical foundation for the supply model only in a most trivial case. He proposes a more general alternative which is, however, still very implausible. Furthermore, against Rose and Allison, I argue that small input‐coefficient changes provide an insufficient excuse for using the supply model for impact studies, and I show that employment estimates may be quite different depending on the approach used.