Input-output model [easay but borring ]

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SUMMARY

The forum discussion centers on calculating production costs for wine, cloth, and gold using an input-output model. Key coefficients include input-output coefficients (A), working force coefficients (a0), capital coefficients (K), and depreciation coefficients (d). The provided matrices and equations, particularly the cost equation, are essential for determining the values of inputs and working force for each product. The user seeks clarification on applying these matrices to derive capital values accurately.

PREREQUISITES
  • Understanding of input-output models in economics
  • Familiarity with matrix multiplication and operations
  • Knowledge of production cost components (price, cost, profit)
  • Basic grasp of coefficients related to labor and capital in production
NEXT STEPS
  • Study the application of input-output analysis in economic modeling
  • Learn matrix operations in detail, focusing on multiplication and addition
  • Explore the derivation of production costs using the cost equation provided
  • Investigate the significance of coefficients in production economics
USEFUL FOR

Students of economics, analysts working with production models, and anyone involved in cost analysis and economic forecasting will benefit from this discussion.

oswald
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1- Question and data
Find the production cost for wine, cloth and gold.
A
0,06 0,03 0,02
0,08 0,175 0,32
0,01 0,015 0,34

A0
0,006 0,005 0,01

K

2,2 0 0
1 0,5 0,26
0 0 0

De

0,2 0 0
0 0,1 0
0 0 0

D

10
10
0

d*a0
0,06 0,05 0,1
0,06 0,05 0,1
0 0 0

k*de
0,44 0 0
0,1 0,05 0,026
0 0 0

A+da0
0,12 0,08 0,12
0,14 0,225 0,42
0,01 0,015 0,34

A'=
0,56 0,08 0,12
0,24 0,275 0,446
0,01 0,015 0,34

.......wine cloth gold
Price..... ...8,44425 0,46119 1,00000
Cost... ...4,84947 0,81737 1,55900
Input..... 0,55355 0,34904 0,65647
working force... 0,53433 0,44527 0,89054
Depreciation... 3,76159 0,02306 0,01199
Profit..... 3,59479 -0,35618 -0,55900
Capital.....20,12642 1,02490 1,66692
Fixed...... 19,03854 0,23059 0,11991
Circulating ...1,08788 0,79431 1,54701
Profit %..... 17,86000 -34,75000 -33,53000

where;

A= input output coefficient
a0=working forcecoefficient
K=capital coefficient
<d>=depreciation coefficient
d= wage coefficient

2. Homework Equations

Cost = price * [A+da0+<de>k]

4,84947 0,81737 1,55900 = 8,44425 0,46119 1,00000 * A';
A'=
0,56 0,08 0,12
0,24 0,275 0,446
0,01 0,015 0,34

3. The Attempt at a Solution

I want to know how calculate the value of Input,working force... for each product with thoses matrices!
For exemple, capital for wine is 20,126, my teacher says we obtain by resolving:
Capital = p[pAj + p<d>Kj+pdaoj], but it didn't work..
 
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i understand, i remembered the mean i x j [ n,m i x j ]
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