Search results with tag "Leontief"
2.7: Leontief Input-Output Model - Texas A&M University
www.math.tamu.eduAn Leontief Input-Output Model studies interaction between difierent sectors of economics. An assumption that we will make is that everything produced is consumed, and that supply always equals demand. EXAMPLE 2. A company has two interacting branches, (A) and (B). Branch (A) consumes $0:4 of its own output and $0:3 of (B)-output for every $1 it
7.2 Application to economics: Leontief Model
www.math.ksu.eduOne has 8 p1 = a11p1 +a21 p2 + +aen1 pn p2 = ea12 p1 +ea22 p2 + + an2 p2 pn = ea1n p1 +ean2 pn + +aenn pn since eaij pi is the amount paid by industry Sj for products produced by industry Si. The total income of industry Sj equals the total price Sj has to pay to all other industries. Again, one can write this as a matrix equation: PA = P: This equation can be transformed in the …
Quantifying International Production Sharing at the ...
www.nber.orgIO model) are known, value added production and trade can be derived simply by multiplying these flows with the value added to gross output ratio in each country/industry. To better understand how the standard Leontief decomposition works, let us assume a