If we let the technology matrix is a matrix A, and L is the Leontief inverse matrix.
L = (I - A) -1
then if L will be inverse again , Then will generate a matrix (I - A), illustrated by below equation
L-1 = (I - A) -1 = ((I - A) -1) -1 = (I - A)
then the matrix A can be calculated:
I - A = (I - A)
-A = (I - A)-I
A = absolute((I - A)-I)
Based on equation of the matrix above, then by using excel the above equation can be calculated with the following guidelines:
1. Create a table as below
2. Compute the inverse Leontief inverse matrix
((I - A) -1) -1
Block range A7: C9, type formula:
= MINVERSE (A2: C4)
press combination button Ctrl + Shift + Enter
Compute the matrix A = (I-A)-I
Block range E7: G9
= ABS (A7: C9-E2: G4)
press Ctrl + Shift + Enter
If you want to download the excel file can use this link Leontief matrix
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The blog was absolutely fantastic! Lots of great information and
ReplyDeleteinspiration, 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!