47 Leontief Input-Output Analysis47里昂惕夫的投入产出分析.ppt

Learning Objectives for Section 4.7 Leontief Input-Output Analysis The student will be able to formulate and solve the two-industry model of input-output analysis. The student will be able to formulate and solve the three-industry model of input-output analysis. Leontief Input-Output Analysis In this section, we will study an important economic application of matrix inverses and matrix multiplication. This branch of applied mathematics is called input-output analysis and was first proposed by Wassily Leontief, who won the Nobel Prize in economics in 1973 for his work in this area. Wassily Leontief1905-1999 Wassily Leontief was born August 5th, 1905 in St. Petersburg, the son of Wassily W. Leontief and his wife Eugenia. A brilliant student, he enrolled in the newly renamed University of Leningrad at only 15 years old. He got in trouble by expressing vehement opposition to the lack of intellectual and personal freedom under the countrys Communist regime, which had taken power three years earlier. He was arrested several times. Wassily Leontief(continued) At Harvard, he developed his theories and methods of Input-Output analysis. This work earned him the Nobel prize in Economics in 1973 for his analysis of Americas production machinery. His analytic methods, as the Nobel committee observed, became a permanent part of production planning and forecasting in scores of industrialized nations and in private corporations all over the world. Professor Leontief passed away on Friday February 6th, 1999. For more information on his life, visit /leontief/Life.html Basic Input-Output Problem The main problem of input-output analysis is the following: Consider an economy with several industries. Each industry has a demand for products from other instrustries (internal demand). There are also external demands from the outside. Find a production level for the industries that will meet both internal and external demands. Two-Industry ModelExample We start with an econ