This article examines the Ghosh Supply-Side model, focusing on how it measures the impact of changes in input availability on industrial output. Unlike the Leontief model, the Ghosh model uses allocation coefficients to assess these changes, with the Ghosh matrix (G) helping to analyze final output variations based on input changes.

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.