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Leontief input-output model with trapezoidal fuzzy numbers and Gauss-Seidel algorithm

Author

Listed:
  • Charmi Panchal
  • Pasi Luukka
  • Jorma K. Mattila

Abstract

In this work a fuzzy linear system is used to solve Leontief input-output model with fuzzy entries. For solving this model, we assume that the consumption matrix from different sectors of the economy and final demand are known. These assumptions heavily depend on the information obtained from the industries. Hence it is clear that uncertainties are involved in this information. The aim of this work is to model these uncertainties and to address them by fuzzy entries such as fuzzy numbers and LR-type fuzzy numbers (triangular and trapezoidal). Fuzzy linear system has been developed and it is solved using Gauss-Seidel algorithm. Numerical examples show the efficiency of this algorithm. The famous example from Prof. Leontief, where he solved the production levels for US economy in 1958, is also further analysed to demonstrate the efficiency of our approach.

Suggested Citation

  • Charmi Panchal & Pasi Luukka & Jorma K. Mattila, 2014. "Leontief input-output model with trapezoidal fuzzy numbers and Gauss-Seidel algorithm," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 4(4), pages 456-474.
    • Handle: RePEc:ids:ijpmbe:v:4:y:2014:i:4:p:456-474
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