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On Brody’S Conjecture: Facts And Figures From The Us Economy

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Abstract

Brody’s conjecture is submitted to an empirical test using input-output flow data of varying size for the US economy for the benchmark years 1997 and 2002, as well as for the period 1998-2010. The results suggest that the ratio of the modulus of the subdominant eigenvalue to the dominant one increases both with the size of the matrix and, for the same matrix size, over the years lending support to the view of increasing instability (in the sense of Brody) for the US economy over the period 1997-2010.

Suggested Citation

  • Theodore Mariolis & Lefteris Tsoulfidis, 2012. "On Brody’S Conjecture: Facts And Figures From The Us Economy," Discussion Paper Series 2012_06, Department of Economics, University of Macedonia, revised May 2012.
    • Handle: RePEc:mcd:mcddps:2012_06
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    1. Guang-Zhen Sun, 2008. "The First Two Eigenvalues of Large Random Matrices and Brody's Hypothesis on the Stability of Large Input-Output Systems," Economic Systems Research, Taylor & Francis Journals, vol. 20(4), pages 429-432.
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    9. Christian Bidard & Tom Schatteman, 2001. "The Spectrum of Random Matrices," Economic Systems Research, Taylor & Francis Journals, vol. 13(3), pages 289-298.
    10. Theodore Mariolis & Lefteris Tsoulfidis, 2009. "Decomposing the Changes in Production Prices into "Capital-Intensity" and "Price" Effects: Theory and Evidence from the Chinese Economy ," Contributions to Political Economy, Cambridge Political Economy Society, vol. 28(1), pages 1-22.
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    Cited by:

    1. Anwar Shaikh & Luiza Nassif, 2018. "Eigenvalue distribution, matrix size and the linearity of wage-profit curves," Working Papers 1812, New School for Social Research, Department of Economics.

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    More about this item

    Keywords

    Actual economies; Brody’s conjecture; Eigenvalue distribution; Speed of convergence.;
    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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