lecture12hout

lecture12hout - MATH 006 Calculus and Linear Algebra...

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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 Input-Output Analysis Albert Ku (HKUST) MATH 006 2 / 14 Leontief Input-Output Analysis Leontief Input-Output Analysis Wassily Leontief was a Russian-American economist who pioneered the analysis of the so-called input-output 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 Input-Output Analysis Two-Industry Model The following is a description of a two-industry 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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lecture12hout - MATH 006 Calculus and Linear Algebra...

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