Coursenotes_ECON301

3 0209 0 01 t 0576 0048 000 0096 0024

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Unformatted text preview: ion output mix w have we solve must ent a definit required amount of the primary input (lab ed tail te y bour). Would the amou required be consis unt d stent with w what is avail lable in the economy? ? On th basis of our calcula he ations of a01, a02, and a03, the req quired prima input ary can b calculate as follow be ed ws: 228 Ther refore, the specific fina demands s al s wi be feasib if and on if the av ill ble nly vailable amo ount of the prima input (la ary abour) is at least $21 b t billion worth If the am h. mount availa able falls short then that particular p t, production t target will, of course, h have to be revised down nward acco ordingly. One important feature of th above analysis is th as long as the inp f he hat, g put -1 -1 coeff ficients rem main the sam the inve me, erse T = ( A) will not change (I e. Ther refore, only one matrix inversion n x needs to be performed even if w are to e d, we cons sider a hund dred or eve a thousand different final dema vectors (which en t and s could occur if we were ask to analy a full sp d w ked yse pectrum of alternative deve elopment ta argets). This means tha we can sa a pile o computat at ave of tional effort when compared to r ( mination-of f-variables m method), es specially if large other methods (like the elim equa ation system are invo ms olved. Note that this ad e dvantage is not shared by s d Cram mer's Rule. By C Cramer's Ru the solu ule, ution will be calculated according to the form e d g mula: xj = Tj / T each time a different final demand vector is u d used, we m must re-evaluate the but e deter rminants Tj. This w T would be mu more time consum uch ming than th he multi iplication of a known T-1 by a new vector d. f w The Closed Mo odel e us nput outp model is absorbed into the put s If the exogenou sector of the open in syste as just another industry, then the model becomes a closed mo em a odel. In su a model, final dem uch mands and p primary inpu do not a uts appear; in t their place will b the input requireme be t ents and the output of t newly c e the conceived industry. All good become intermediat in nature because everything t...
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