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Optimal normalized structure of demand and value added in a productive leontief model1

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Abstract

The problem of finding normalized vectors of demand and value added in a productive Leontief model is solved. These vectors maximize the national income. It is shown that if the Leontief matrix is productive and indecomposable, then an optimal normalized structure is determined by positive components of the eigenvectors that correspond to maximum eigenvalues of some symmetric matrices. The results of test calculations for a seven-branch matrix are presented.

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Correspondence to P. I. Stetsyuk.

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1The study was financially supported by SNSF (Switzerland), Project No. IZ73ZO_127962 “Analysis of Institutional and Technological Changes in Market and Transition Economies on the Background of the Present Financial Crisis.

Translated from Kibernetika i Sistemnyi Analiz, No. 5, pp. 51–59, September–October 2010.

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Stetsyuk, P.I., Koshlai, L.B. Optimal normalized structure of demand and value added in a productive leontief model1 . Cybern Syst Anal 46, 729–736 (2010). https://doi.org/10.1007/s10559-010-9254-6

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  • DOI: https://doi.org/10.1007/s10559-010-9254-6

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