My bibliography  Save this book chapter

# Bródy’s Capital

Listed:
• Thijs Raa

## Abstract

The dynamic input-output model reads (Leontief, 1970) 1 x = A x + B x ¯ + y $$x = Ax + B\underset{\raise0.3em\hbox{\smash{\scriptscriptstyle-}}}{x} + y$$ The left-hand side features the state variable of the economy, the vector of sectoral capacities, as measured by the output levels. The right-hand side lists the material inputs, investment, and household demand, respectively. The structure of the economy is given by two matrices of technical coefficients. A is the matrix of input flow coefficients and B is the matrix of input stock coefficients. Input flows, for example electricity, are fully consumed, but input stocks, like housing, carry over. Material inputs are, therefore, proportional to the output levels, but investment is proportional to the new capacity, ẋ, where the dot denotes the time derivative. Output x and household demand y are functions of time, but the technical coefficients are constant in the absence of structural change. Implicit in the dynamic input-output model is the assumption that productive activity is instantaneous. If you have the commodity vectors a.1 and b.1 (the first columns of technical coefficients matrices A and B), then you get instantaneously the commodity vectors e1 and b.1, where e1 is the first unit vector, representing the output flow, and b.1 is the carry-over stock. In ten Raa (1986a) I have dropped this assumption, redefining an input flow coefficient as a time profile on the past.

## Suggested Citation

• Thijs Raa, 1997. "Bródy’s Capital," Palgrave Macmillan Books, in: András Simonovits & Albert E. Steenge (ed.), Prices, Growth and Cycles, chapter 12, pages 218-223, Palgrave Macmillan.
• Handle: RePEc:pal:palchp:978-1-349-25275-6_12
DOI: 10.1007/978-1-349-25275-6_12
as

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

## Other versions of this item:

### Keywords

Material Balance; Material Input; Output Coefficient; Input Flow; Convolution Product;
All these keywords.

## Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-25275-6_12. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.palgrave.com .

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.