CHAPTER 16
Application of Matrix Concept
16.1 INPUT−OUTPUT ANALYSIS
The mathematical model Input−Output Analysis was initially proposed by Wassily W. Leotief in 1930’s. This model was built based on the concept ‘economic interdependence’ which implies that every industrial sector of economy is closely related to each other type of sector. That is, the different types of sectors are all inter-dependent and highly inter-related. Due to this close relatedness, if there is any change in one sector (like strike etc.) it will affect all other industries to a varying degree.
16.1.1 Assumptions of a Model
- An economy is segregated into ‘n’ different sectors (industries), and each of these produces only one type of product. Each sector uses input ...
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