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Leontief Input-Output Model. Becky Siegel Carson Finkle April 23 2008. What is the model about?. Used to describe the relationship of industries within a sector International National Regional Within a business. Assumptions of the Model. Fixed proportions of inputs

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leontief input output model

Leontief Input-Output Model

Becky Siegel

Carson Finkle

April 23 2008

what is the model about
What is the model about?

Used to describe the relationship of industries within a sector

  • International
  • National
  • Regional
  • Within a business
assumptions of the model
Assumptions of the Model
  • Fixed proportions of inputs
  • Demand is met fully without a surplus or shortage
    • Internally for closed model
    • Internally + external demand for open model
the equation closed
The Equation (closed)
  • Let C be a consumption matrix such that and X be the production vector such that
closed model
Closed Model

Energy

Manufact-uring

Services

the equation open
The Equation (open)
  • Let C be a consumption matrix such that and X be the production vector such that
slide9

Open Model

External Demand

Labor

Transportation

Food

wrap up
Wrap Up
  • Contributions
  • Limitations
  • Conclusions