On mathematical theory globally optimal strongplannedstrong - PNAS.pdfVIP

Proc. Nati. Acad. Sci. USA Vol. 81, pp. 6549-6553, October 1984 Applied Mathematical Sciences On the mathematical theory of globally optimal planned economic systems LOO-KENG HUA Academia Sinica, Beijing, Peoples Republic of China Contributed by Loo-Keng Hua, May 4, 1984 ABSTRACT Applying a theorem of non-negative matrix Therefore, u 0, v 0. We may assume ul + * + Un = 1, to an economic system, we obtain the rate of growth of the where u = (ul, ..., Un); thus, u and v are unique. system and the ratio between the sectors of production. Ac- Without loss of generality, we may assume that g = 1 and cordingly, we establish a positive eigenvector method for plan- xu = 1, then x(t)u = xA-u = xu = 1. Suppose x(l) 2 0 for ning economics. all 1. From x(l)u = 1, we deduce that x(l) is a bounded se- quence. By the Weierstrass-Bolzano theorem, we have a subsequence Ii such that Section 1. A Theorem About Matrices We begin with a result from the theory of non-negative ma- lim x(tId = x* 2 0. trices that is of interest in its own right. THEOREM. Let A = (a1j) be an n X n irreducible non-nega- Also x*u = 1. Hence, tive nonsingular matrix-i.e., aij 0-denotedby A 2 0 and x be a n-vector 0-i.e., x = (x1, x2, ..., xn), xi 0. Suppose A is not a generalized permutation matrix-i.e., A- 0. Ifx x = lim xA-li Ali = x* uv = v; is not an eigenvector ofA, then there exists an integer lo such axC that, for 1 - lo, i.e., x must be a positive eige