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Stochastic Interpretation of the Cornfield-Leontief Multiplier Process

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Abstract

In part 1 we remember the standard Leontief setup and discuss the economic meaning of the Cornfield-Leontief backward equation. The production network, when considering sequences of product transformations through the economic sectors, is understood as a whirlpool. Part 2 remembers the Monte Carlo solution of input output models and is focused principally on the stochastics of trajectory-length, since trajectories of the underlying Markov process play the role of the product path. Part 3 exemplifies some results of part 2 using input-output-tables of Germany.

Keywords

  • Final Demand
  • Complete Trajectory
  • Stochastic Interpretation
  • Monte Carlo Solution
  • Leontief Model

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© 1993 Springer-Verlag Berlin · Heidelberg

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Egle, K., Fenyi, S. (1993). Stochastic Interpretation of the Cornfield-Leontief Multiplier Process. In: Diewert, W.E., Spremann, K., Stehling, F. (eds) Mathematical Modelling in Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-78508-5_13

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  • DOI: https://doi.org/10.1007/978-3-642-78508-5_13

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-78510-8

  • Online ISBN: 978-3-642-78508-5

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