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Next: Example 1 Up: Leontief Input Output Model Previous: meeting the demand, profitability

Eigenvalues and production

If $C$ is diagonalizable and $ 0 \le c_{ij} < 1 $ with eigenvalue $ \mu _1, \mu_2 \cdots \mu_n$ which satisfy $ \vert\vert \mu _i \vert\vert < 1 $, then $ ( I-C)^{-1} $ will be nonnegative. Therefore for any given nonnegative demand vector $d$, we can find a production vector $p$ such that $CP=d$.



Subsections

Ali A. Daddel 2000-09-19