1. Input and Output Analysis -The Leontief Models
... compiling his input-output matrices that eventually became known simply as Leontief matrices. The 1947 table consisted of 42 major sectors of the economy and described the interdependence between them. Since the 1940's, many new input-output tables have been calculated. Each matrix models the flow of goods and services in the economy at a certain point in time. Leontief developed his models in order ... the matrix adds to 1 Based on these properties, it can be said that the closed Leontief model is a Markov matrix. The Markov matrix assures us that as long as these two properties hold, ...
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