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A CONTINUOUS LEONTIEF DYNAMIC INPUT‐OUTPUT MODEL
Author(s) -
Johnson Thomas
Publication year - 1985
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1985.tb00846.x
Subject(s) - disinvestment , economics , set (abstract data type) , mathematics , dynamic equation , mathematical economics , mathematical optimization , econometrics , computer science , microeconomics , physics , nonlinear system , incentive , programming language , quantum mechanics
This paper extends the Leontiet dynamic input‐output model by incorporating continuous lags, capacity constraints, excess capacity and limits on disinvestment in each sector. These extensions result in “phase changes”, where sectors discretely change from one set of conditions to another. The resulting system of equations is “solved” by numerical methods and applied to the U.S. economy. Projections for the 1952 to 1962 period are compared with actual levels.