English

Existence and uniqueness of solutions for Leontief's Input-Output Model, graph theory and sensitivity analysis

Optimization and Control 2024-02-02 v1

Abstract

We provide a complete study of existence and uniqueness (uniqueness up to multiples in the case d=0\mathbf{d} = \mathbf{0}) of non-negative and non-trivial solutions x\mathbf{x} for the linear system (IA)x=d(\mathbf{I}- \mathbf{A})\mathbf{x} = \mathbf{d} with A0,d0\mathbf{A} \geq \mathbf{0}, \mathbf{d} \geq 0 (which, in particular, applies to Leontief's Input Output Model). This study is done in terms of the block triangular form of the matrix A\mathbf{A} and is related to a directed graph associated to A\mathbf{A}. In particular, this study of existence and uniqueness up to multiples of solutions provides a framework that allows us to rigorously perform a sensitivity analysis of the normalized solutions of the linear system (IA)x=d(\mathbf{I} - \mathbf{A})\mathbf{x} = \mathbf{d}.

Cite

@article{arxiv.2401.15099,
  title  = {Existence and uniqueness of solutions for Leontief's Input-Output Model, graph theory and sensitivity analysis},
  author = {José Carlos Bellido and Luis Felipe Prieto-Martínez},
  journal= {arXiv preprint arXiv:2401.15099},
  year   = {2024}
}