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- Thread starter charlies1902
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In summary, the conversation discusses a problem involving a Leontief model and the question of whether it is acceptable for cii to be greater than 1 for some i. The problem asks for both mathematical and real-world reasons for this. The speaker is unsure of how to answer the question but suggests that numbers greater than one may be allowed along the diagonal.

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charlies1902 said: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.

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

It asks for both mathematical and real-world reasons.

RGV

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