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Parsing Economic Technology Matrices by Triangular Decomposition

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  • Reiner Wolff

Abstract

An input–output technology with intermediate inputs is said to be productive or viable if it allows for positive net amounts of every commodity. Each division or sector will then contribute less than one unit of direct and indirect intermediate inputs to the making of one unit of its own output. Equivalently, the leading principal minors of the technology’s associated Leontief matrix are all positive (Hawkins–Simon condition). We demonstrate that the minors can be checked efficiently in the course of a triangular decomposition of this matrix. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Reiner Wolff, 2005. "Parsing Economic Technology Matrices by Triangular Decomposition," Computational Economics, Springer;Society for Computational Economics, vol. 25(3), pages 275-279, June.
    • Handle: RePEc:kap:compec:v:25:y:2005:i:3:p:275-279
    DOI: 10.1007/s10614-005-2973-5
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    References listed on IDEAS

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    1. Takayama,Akira, 1985. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521314985, October.
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    More about this item

    Keywords

    JEL Classification number ; C00; D57; O40;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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