@article{Vishwakarma:272177,
      recid = {272177},
      author = {Vishwakarma, K. P.},
      title = {AN APPLICATION OF THE GENERALIZED INVERSE IN INPUT-OUTPUT  AND MACROECONOMIC ANALYSIS},
      address = {1979},
      number = {2099-2018-3155},
      series = {REPORT 7909/E},
      pages = {28},
      year = {1979},
      abstract = {The generalized inverse concept is applied to a dynamic  model for the Netherlands that incorporates both  input-output and macroeconomic relationships. The model is  over-determined in that there are 34 equations for its 33  endogenous economic variables. The implications for  policymaking of either retaining or dropping a constraint  on balance of payments are studied through the generalized  inverse. When that constraint is excluded, the model  reduces to the more familiar fully-determined situation,  having 33 equations in as many variables. Numerical results  relating to shifts in indirect taxes are given. It is seen  that the response of the over-determined model, the 34  equation case, is radically different from that of the  fullydetermined case. In fact, a reversal of charges in,  for example, unemployment, wage rate, and in prices of  exports and private consumption is observed. The conclusion  is then that familiar ideas about policymaking which are  based on fully-determined models, may have to be revised  thoroughly when an over-determined model is more  appropriate.},
      url = {http://ageconsearch.umn.edu/record/272177},
      doi = {https://doi.org/10.22004/ag.econ.272177},
}