Monday 21 November 2011

How to calculate Leontief matrix in excel

Calculate the Leontief matrix in excel. Leontief matrix is a matrix that is the inverse of identity matrix minus matrix A. Leontief matrix is widely used in making the simulation or quantitative input-output analysis. In mathematical equations used to define the matrix Leontif are:

L = (I - A) -1

where:
L = matrix inverse Leontief
I = Identity Matrix
A = matrix A

By using Microsoft Excel, if we known a matrix A, then the Leontief inverse matrix can be calculated
to be more easily able to see the guidelines below:

1. Create a table matrix A and the identity matrix as below



2. To calculate the matrix I-A
Block range E2:G4
type the formula = A7:C9-A2:C4
Then press the key combination Ctrl + Shift + Enter

3. To calculate the Leontief inverse matrix

Block range E7:G9
type the formula = MINVERSE (E2:G4)
Then press the key combination Ctrl + Shift + Enter

The result looks like below



If you want to download the excel file can use this link Leontief matrix

Related Posts by Categories



3 comments:

  1. it is not so good but you can visit this site. it is one of the amazing post. he gives us a lot of information. so i like him.

    ReplyDelete
  2. The blog was absolutely fantastic! Lots of great information and
    inspiration, both of which we all need!b Keep 'em coming... you all do
    such a great job at such Concepts... can't tell you how much I, for
    one appreciate all you do!

    ReplyDelete

Random Posts