Understanding Ghosh Supply-Side Methods for Evaluating Infrastructure Impact

Table of Links

Abstract and Introduction

2. Literature Review

2.1 Reviewing Broadband Infrastructure’s Impact on the Economy

2.2 Previous Research into IO Modeling of Broadband Investment

2.3 Context of the Bipartisan Infrastructure Act through Previous Research

3. Methods and 3.1 Leontief Input-Output (IO) Modeling

3.2 Ghosh Supply-Side Assessment Methods for Infrastructure

3.3 Data and Application

4. Results and 4.1 To what extent does the Bipartisan Infrastructure Law allocate funding to unconnected communities in need?

4.2 What are the GDP impacts of the three funding programs within the Bipartisan Infrastructure Law?

4.3 How are the supply chain linkages affected by allocations from the Bipartisan Infrastructure Law?

5. Discussion

5.1 To what extent does the Bipartisan Infrastructure Law allocate funding to unconnected communities in need?

5.2 What are the GDP impacts of the three funding programs within the Bipartisan Infrastructure Law?

5.3 How are supply chain linkages affected by allocations from the Bipartisan Infrastructure Law?"

Conclusion

Acknowledgements and References

3.2 Ghosh Supply-Side Assessment Methods for Infrastructure

The Ghosh Supply-Side model measures the changes in availability of inputs on industrial output. While the Leontief matrix relies on technical coefficients aij , the Ghosh matrix relies on allocation coefficients bij = zij / xi . The allocation coefficient measures the value of transactions from sectors i to j divided by the output of sector i.

The allocation coefficients can be made into a matrix B similar to A, as detailed in equation (13).

Thus, as per equation (14).

From the previous section, we know that Ax = Z, as in equation (15).

The summation of the inputs of an industry plus its value added is equal to its output, per the IO table.

Thus, as per equation (16).

Similarly, as per equation (17).

The Ghosh matrix, G, is equal to (I-B) -1 and allows us to see the changes in final output from the changes in value added.