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An Armington-Leontief Model

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  • Ferran Sancho

Abstract

We develop a novel linear Leontief model with an Armington flavor. We show (1) that the standard linear model is a special case of this new model and (2) that this model allows the computation of multiplier effects with no external output bias. We also provide (3) a mathematical proof of the solvability of the model and the non-negativity of the newly derived multiplier matrix that results from the model's equilibrium solution.

Suggested Citation

  • Ferran Sancho, 2018. "An Armington-Leontief Model," UFAE and IAE Working Papers 963.18, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    • Handle: RePEc:aub:autbar:963.18
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    References listed on IDEAS

    as
    1. Kim J. Ruhl, 2008. "The International Elasticity Puzzle," Working Papers 08-30, New York University, Leonard N. Stern School of Business, Department of Economics.
    2. Guerra, Ana-Isabel & Sancho, Ferran, 2018. "Positive and normative analysis of the output opportunity costs of GHG emissions reductions: A comparison of the six largest EU economies," Energy Policy, Elsevier, vol. 122(C), pages 45-62.
    3. Alper DUMAN & Gül ÖZGÜZER, 2012. "An Input-Output Analysis of Rising Imports in Turkey," Ekonomik Yaklasim, Ekonomik Yaklasim Association, vol. 23(84), pages 39-54.
    4. Reinert, Kenneth A. & Roland-Holst, David W., 1992. "Armington elasticities for United States manufacturing sectors," Journal of Policy Modeling, Elsevier, vol. 14(5), pages 631-639, October.
    5. Su, Bin & Ang, B.W., 2013. "Input–output analysis of CO2 emissions embodied in trade: Competitive versus non-competitive imports," Energy Policy, Elsevier, vol. 56(C), pages 83-87.
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    1. Guerra, Ana-Isabel & Sancho, Ferran, 2018. "Positive and normative analysis of the output opportunity costs of GHG emissions reductions: A comparison of the six largest EU economies," Energy Policy, Elsevier, vol. 122(C), pages 45-62.

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    More about this item

    Keywords

    Armington principle; extended linear equilibrium model; technological productivity.;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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