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A Dynamic Leontief Model with Non-renewable Resources

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  • 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.

Suggested Citation

  • Imre Dobos & Adel Floriska, 2005. "A Dynamic Leontief Model with Non-renewable Resources," Economic Systems Research, Taylor & Francis Journals, vol. 17(3), pages 317-326.
  • Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:317-326 DOI: 10.1080/09535310500221856
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    References listed on IDEAS

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    Cited by:

    1. George Halkos & Kyriaki Tsilika, 2016. "Dynamic Input–Output Models in Environmental Problems: A Computational Approach with CAS Software," Computational Economics, Springer;Society for Computational Economics, vol. 47(3), pages 489-497, March.
    2. Imre Dobos & Peter Tallos, 2013. "A dynamic input-output model with renewable resources," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(2), pages 295-305, March.
    3. Jitka Janová & David Hampel, 2016. "Optimal managing of forest structure using data simulated optimal control," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 24(2), pages 297-307, June.
    4. 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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