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The Planner and the Market: The Takayama Judge Activity Model

In: Equilibrium Models in an Applied Framework

Author

Listed:
  • Ronny Norén

    (Mid Sweden University)

Abstract

The linear programming formulation of the Leontief input–output model, established as the linear activity analysis model, represents an advancement in the construction of applied general equilibrium models, because it introduces a great deal of flexibility into the basic linear input–output structure. The lack of price-induced substitution was overcome by the development of the linear activity model. By allowing inequality constraints and the introduction of an endogenous mechanism of choice among alternative feasible solutions, the effects of sector capacity constraints and primary input availabilities may be investigated in the model.

Suggested Citation

  • Ronny Norén, 2013. "The Planner and the Market: The Takayama Judge Activity Model," Lecture Notes in Economics and Mathematical Systems, in: Equilibrium Models in an Applied Framework, edition 127, chapter 0, pages 21-54, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-34994-2_3
    DOI: 10.1007/978-3-642-34994-2_3
    as

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