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Unformatted text preview: MATH 006 Calculus and Linear Algebra (Lecture 12) Albert Ku HKUST Mathematics Department Albert Ku (HKUST) MATH 006 1 / 14 Outline 1 Leontief InputOutput Analysis Albert Ku (HKUST) MATH 006 2 / 14 Leontief InputOutput Analysis Leontief InputOutput Analysis Wassily Leontief was a RussianAmerican economist who pioneered the analysis of the socalled inputoutput model a model that describes how the input and output of different industries affect each other. The theory involves the extensive use of matrices. Albert Ku (HKUST) MATH 006 3 / 14 Leontief InputOutput Analysis TwoIndustry Model The following is a description of a twoindustry model : We have two industries, electric company E and water company W. Output for both companies is measured in dollars . The electric company uses both electricity and water (input) in the production of electricity (output), and the water company uses both electricity and water (input) in the production of water (output). Suppose that the production of each dollar’s worth of electricity requires $0.3 worth of electricity and $0.1 worth of water, and the production of each dollar’s worth of water requires $0.2 worth of electricity and $0.4 worth of water. The final demand from the outside sector of the economy is $12 million for electricity and $8 million for water....
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This note was uploaded on 12/28/2010 for the course MATH MATH006 taught by Professor Forgot during the Fall '09 term at HKUST.
 Fall '09
 forgot
 Math, Calculus, Linear Algebra, Algebra

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