The equivalent core model, or the Z + 1 approximation, has been used to interpret the binding energy, BE, shifts observed in X-ray photoelectron spectroscopy, XPS; in particular to relate these shifts to their origin in the electronic structure of the system. Indeed, a recent paper has claimed that the equivalent core model provides an intuitive chemical view of XPS BE shifts. In the present paper, we present a detailed comparison of the electronic structure provided from rigorous core-hole theory and from the equivalent core model to assess the validity and the utility of the use of the equivalent core model. This comparison shows that the equivalent core model provides a qualitative view of the different properties of initial and core-hole electronic structure. It is also shown that a very serious limitation of the equivalent core model is that it fails to distinguish between initial and final state contributions to the shifts of BEs which seriously reduces the utility of the information obtained with the equivalent core model. Indeed, there is a danger of making an incorrect assignment of the importance of relaxation because the equivalent core model appears to stress the role of final state effects. Given the importance of the distinction of initial and final state effects, we provide rigorous definitions of these two effects and we discuss an example where an incorrect interpretation was made based on the use of the equivalent core model.