Inverse of Leontief Input

Matrix by Approximation
Presented by:
Himanshu Malik
0041
Structure of an input-output model
n n nn n n n
n n
n n
d x a x a x a x
d x a x a x a x
d x a x a x a x
+ + + + =
+ + + + =
+ + + + =

2 2 1 1
2 2 2 22 1 21 2
1 1 2 12 1 11 1
2
n n nn n n n
n n
n n
d x a x a x a x
d x a x a x a x
d x a x a x a x
=
=
=

2 2 1 1
2 2 2 22 1 21 2
1 1 2 12 1 11 1
OR
3
(
(
(
(

=
(
(
(
(

(
(
(
(

n n nn n n
n
n
d
d
d
x
x
x
a a a
a a a
a a a

2
1
2
1
2 1
2 22 21
1 12 11
1
1
1
form Matrix
(
(
(
(

=
(
(
(
(

(
(
(
(

(
(
(
(

n n nn n n
n
n
d
d
d
x
x
x
a a a
a a a
a a a

2
1
2
1
2 1
2 22 21
1 12 11
1 0 0
0 1 0
0 0 1
decomposed form matrix The
( I - A ) X = D
4
( )
accuracy. of degree
desired to ed approximat is inverse Therefore,
higher. or 4 orders of
matrices square for tedious and lengthy is But this
K. matrix singular - non any
for
| |
1
using solved be can ) (
) (
1 1
1
adjK
K
K A I
d A I x Or
d x A I
=
=
=

matrix. null a is
i.e. as 0 prove to need we So
). ( of inverse as taken be can ) . .......... (
sum matrix then I, matrix been tion multiplica of result the Had

) . .......... ( ) . .......... (
) . .......... ( ) . .......... (
) . .......... )( (
integer) positive a tion(m multiplica matrix he consider t Now
1
1
2
1
1 2 2
2 2
2
+
+
+
+

+ + + +
=
+ + + + + + + + =
+ + + + + + + + =
+ + + +
=
m
m
m
m
m m m
m m
m
A
m A
A I A A A I
A I
A A A A A A A I
A A A I A A A A I I
A A A I A I
matrix. t coefficien - input Leontief by satisfied are conditions Both these
1. than less is A matrix of column each of ii)Sum
negative. - non are A matrix in elements the i)All
: Conditions
New concept: Norm of a matrix A
Norm is defined as largest column sum in A and is denoted by N(A).
No element in a matrix can exceed the value of the norm i.e.
j i, all for ) (A N a
ij
s
| |
| | | |
| | ...(3) ) ( ) (
as d generalize be can result This
) ( ) ( ) ( ) ( ) ( ) (
imply (2) and (1) , When
...(2) ) ( ) (
becomes (1) B, A When
...(1) ) ( ) ( ) (
i.e. N(B) and N(A)
of product the exceed cannot AB matrix product of norm
: B and A matrices any two for Now,
1 ) ( 0 have we negative, - non being A Matrix
1 ) ( have we analysis, output - input In
: Proof
3 2
2 3
2
2
2
m
m
A N A N
A N A N A N A N A N A N
A B
A N A N
B N A N AB N
A N
A N
s
= s s
=
s
=
s
< <
<
| |
| |
). ( of
inverse ed approximat the is ) ..... ( that proves It
matrix. null a approach to
made be can matrix the large, ly sufficient m making by Thus,
zero. approaches ) ( as zero approach must in elements
) N(A) ) ( ( m as 0 ) (
) 1 ) ( 0 ( m as 0 N(A)
2
1
A I
A A A I
A
A N A
A N A N
A N
m
m
m m
m
m m
m

+ + + +

s
< <
+