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About the size of the measurement units in a Leontief system and its consequences

  • Xos� Luis Qui�o� L�pez


    (Department of Quantitative Economics, University of Santiago de Compostela)

Beginning from the economic meaning of indecomposability in an Leontief-type system and then modifying the size of the measure units of the different goods through consecutive approximations, the original system is turned into another, structurally equivalent, one whose technological matrix A is such that each column sum is equal to the maximum eigenvalue of the original matrix that admits 1 = (1,...,1) as left positive eigenvector, from where we deduce the main Perron-Frobenius theorem.

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Paper provided by IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia in its series Documentos de trabajo - Analise Economica with number 0052.

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Length: 30 pages
Date of creation: Mar 2013
Date of revision:
Handle: RePEc:edg:anecon:0052
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