ON THE LEONTIEF DYNAMIC INVERSE.

In this article the author comments on the theory developed by the economist Wassily Leontief, on the dynamic inverse approach for solving dynamic multisectoral models. According to the author Leontief's method avoids the well-known difficulty of a singular capital matrix but ignores problems of con...

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Publicado en:Quarterly Journal of Economics Vol. 86; no. 4; pp. 693 - 697
Autor principal: Kendrick, David
Formato: Artículo
Publicado: Oxford University Press / USA Nov72
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: ON THE LEONTIEF DYNAMIC INVERSE.
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        au: Kendrick, David
        affil: University of Texas.
      su:
        Econometrics
        Macroeconomics
        DYNAMO (Computer program language)
        Savings
        Economic models
        Matrices (Mathematics)
        Iterative methods (Mathematics)
        Fractional calculus
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          Econometrics
          Macroeconomics
          DYNAMO (Computer program language)
          Savings
          Economic models
          Matrices (Mathematics)
          Iterative methods (Mathematics)
          Fractional calculus
      ab: In this article the author comments on the theory developed by the economist Wassily Leontief, on the dynamic inverse approach for solving dynamic multisectoral models. According to the author Leontief's method avoids the well-known difficulty of a singular capital matrix but ignores problems of consistency with initial conditions. While consistency may be obtained through iterative selection of terminal conditions, this procedure would be computationally difficult for models with many sectors. Here the author suggests a method which obviates the necessity of iteration by integrating forward in time from the initial conditions and overcomes the singularity problem through the use of a partitioning procedure. This forward integration procedure has the intuitive advantage that it works from given initial conditions and that an interactive procedure is not required. The author remarks that while the computational gain would be of small importance in models with a few sectors, it would be of major importance in dynamic models.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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          year: 1972
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