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Homework Help: Leontief model

  1. Sep 18, 2012 #1
    I attached the problem.

    I honestly have no idea how to even go about solving this problem. If someone can give me a hint, that'd be great.

    Attached Files:

  2. jcsd
  3. Sep 19, 2012 #2

    Ray Vickson

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    Science Advisor
    Homework Helper

    Start by understanding what the problem is saying. You have a Leontief model of the form
    [tex] \textbf{x} = C \textbf{x} + \textbf{d}, [/tex]
    where d is external demand and C is the inter-sector internal demand matrix. The question is asking if it is OK to have cii > 1 for some i, and if not, why not.
    It asks for both mathematical and real-world reasons.

    Last edited: Sep 19, 2012
  4. Sep 19, 2012 #3
    I have read about the Leontief model but I still don't know how to answer the question. I think you should be able to have numbers greater than one along the diagnol
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