 A Property of the Leontief Inverse and its Applications to Comparative Static AnalysisLisheng Zeng Economic Systems Research, 2001, vol. 13, issue 3, 299-315 Abstract: We arbitrarily choose a submatrix of order 2 in the Leontief inverse matrix B . If a main diagonal element in the submatrix is a main diagonal element in B , then the determinant of the submatrix is non-negative; in particular, if the two main diagonal elements in the submatrix are all the main diagonal elements in B , then the determinant of the submatrix is greater than or equal to 1. This property can be used in the comparative static analysis for the input-output model. For example, when the change only occurs in one sectoral final demand or one corresponding row of the input coefficient matrix, which leads to a change of this sectoral gross output, the equivalent conditions that the absolute value of the rate of change of this sectoral gross output is larger than or equal to all other sectoral change rates and larger than at least one sectoral rate of change are shown. It is impossible to derive the exact results for the comparative static analysis if the property is not applied. A previous fault confirms this point. Keywords: Leontief Inverse; Comparative Static Analysis; Input-OUTPUT Model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:ecsysr:v:13:y:2001:i:3:p:299-315 Ordering information: This journal article can be ordered from DOI: 10.1080/09537320120070185 Access Statistics for this article Economic Systems Research is currently edited by Bart Los and Manfred Lenzen More articles in Economic Systems Research from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.