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A Dynamic Leontief Model with Non-renewable Resources

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Author Info

  • Imre Dobos
  • Adel Floriska

Abstract

In this paper we study a generalization of the dynamic Leontief input-output model. We extend the standard dynamic Leontief model with the balance equation of non-renewable resources. Obviously, the non-renewable stocks will decrease, exploiting primary resources. In this study we examine the controllability of this extended model by taking the consumption as the control parameter. Assuming balanced growth for both consumption and production, we investigate how long these scarce resources will cover the input needs of production and how the lifetime of the system depends on the balanced growth rate and on the consumption. In doing so, we apply classic results from control theory and on eigenvalue problems in linear algebra.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500221856
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 17 (2005)
Issue (Month): 3 ()
Pages: 317-326

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Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:317-326

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Related research

Keywords: Dynamical systems; eigenvalue problem; control theory; environmental management;

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Cited by:
  1. Dobos, Imre & Floriska, Adel, 2007. "The resource conservation effect of recycling in a dynamic Leontief model," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 334-340, July.

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