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Sectors May Use Multiple Technologies Simultaneously - The Rectangular Choice-of-Technology Model with Binding Factor Constraints


  • Faye Duchin

    () (Department of Economics, Rensselaer Polytechnic Institute, Troy NY 12180-3590, USA)

  • Stephen H. Levine

    (Department of Environmental Engineering, Tufts University, Boston, MA, USA)


We develop the rectangular choice-of-technology model with factor constraints, or RCOT, for analysis of the economy of a single region, or of multiple regions in the context of a model of the world economy. RCOT allows for one or more sectors to operate more than one technology simultaneously, using the relatively lowest-cost one first and adding another if and when the preceding one encounters a binding factor constraint. The model is motivated by the evident fact that oil wells and mineral deposits of different qualities may be exploited simultaneously, as may the use of both primary and recycled sources for the same materials. RCOT generalizes Carter’s choice-of-technology model, which allowed one of two choices to all sectors, for up to q choices and adds the factor constraints that allow several alternatives to operate simultaneously. The Appendix gives a numerical example.

Suggested Citation

  • Faye Duchin & Stephen H. Levine, 2010. "Sectors May Use Multiple Technologies Simultaneously - The Rectangular Choice-of-Technology Model with Binding Factor Constraints," Rensselaer Working Papers in Economics 1006, Rensselaer Polytechnic Institute, Department of Economics.
  • Handle: RePEc:rpi:rpiwpe:1006

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    Cited by:

    1. Roxana Juliá & Faye Duchin, 2013. "Land Use Change and Global Adaptations to Climate Change," Sustainability, MDPI, Open Access Journal, vol. 5(12), pages 1-18, December.
    2. Faye Duchin & Stephen Levine, 2012. "The rectangular sector-by-technology model: not every economy produces every product and some products may rely on several technologies simultaneously," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-11, December.
    3. Jadwiga R. Ziolkowska, 2016. "Socio-Economic Implications of Drought in the Agricultural Sector and the State Economy," Economies, MDPI, Open Access Journal, vol. 4(3), pages 1-11, September.
    4. Malik, Arunima & Lenzen, Manfred & Ely, Rômulo Neves & Dietzenbacher, Erik, 2014. "Simulating the impact of new industries on the economy: The case of biorefining in Australia," Ecological Economics, Elsevier, vol. 107(C), pages 84-93.

    More about this item

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development


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