Leontief InputOutput Analysis Austin Community College 列昂惕夫投入产出分析奥斯汀社区学院.ppt

Leontief Input-Output Analysis A way to analyze economics of interdependent sectors Case study: Oil and Transportation Transportation requires gasoline from the oil industry transportation of equipment from the transportation industry Oil production requires transportation of gasoline from the transportation industry oil-based fuels for processing from the oil industry We will look at a single oil company and a single transportation company as a closed system Some basic calculations Leontief analysis allows us to calculate how much each company should produce to meet a given demand Let x = the total output from oil company Let y = the total output from transportation company Setting up the demand equations The total output of each company will equal the sum of the internal and external demands: Expressed as a matrix equation: Solving the demand equations Solve for X: In our example: The solution Putting it all together: In order to meet the demand the companies need to produce $20.8 billion of oil $4.4 billion of transportation * Oil Industry Cost of producing $1 worth of gas: $.32 in oil costs $.12 in transportation costs Transportation industry Cost of producing $1 worth of transportation: $.50 in gas costs $.20 in transportation costs Suppose that the demand from the outside sector of the economy (all consumers outside of oil and transportation) is: $15 billion for oil $1.2 billion for transportation If the companies produce exactly this amount, then the amount used in production is: .32(15) + .50(1.2) = $5.4 billion in oil .12(15) + .20(1.2) = $2.0 billion in transportation This leaves only $9.6 billion of oil and $1.0 billion of transportation to meet the demand. The internal demand for each is the combined demand from the oil industry and from the transportation industry *