Input-output model [easay but borring ]

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In summary, the conversation discusses the production cost for wine, cloth, and gold, and the calculations involved in determining the cost. The cost is calculated by multiplying the price by the input-output coefficient (A+da0+<de>k). The values for input, working force, depreciation, capital, and profit are also calculated using this formula. However, the exact method for calculating the value of each variable is not specified.
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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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  • #2
i understand, i remembered the mean i x j [ n,m i x j ]
x w c g
w
c
g
 

What is an input-output model?

An input-output model is an economic tool used to analyze the interdependence between different sectors of an economy. It shows the flow of goods and services between industries, as well as the corresponding inputs and outputs.

How is an input-output model useful?

An input-output model can help economists and policymakers understand how changes in one sector of the economy can impact other sectors. It can also be used to forecast the effects of policy changes and to identify potential areas for growth or improvement.

What are the limitations of an input-output model?

One limitation of an input-output model is that it assumes a closed economy, meaning that it does not take into account international trade. It also relies on historical data and may not accurately reflect current economic conditions.

What is the difference between a static and dynamic input-output model?

A static input-output model looks at the current relationships between sectors in an economy, while a dynamic input-output model takes into account changes over time. Dynamic models are more complex and may provide more accurate predictions.

How is an input-output model related to other economic models?

An input-output model is a type of macroeconomic model, which looks at the economy as a whole. It is related to other macroeconomic models such as Keynesian and neoclassical models, but it focuses specifically on the interdependence of sectors within an economy.

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