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A continuous Leontief dynamic input-output model

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Papers of the Regional Science Association

Abstract

This paper extends the Leontief dynamic input-output model by incorporating continuous lags, capacity constraints, excess capacity and limits on disinvestment in each sector. These extensions result in “phase changes”, where sectors discretely change from one set of conditions to another. The resulting system of equations is “solved” by numerical methods and applied to the U.S. economy. Projections for the 1952 to 1962 period are compared with actual levels.

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Authors and Affiliations

  1. Department of Agricultural Economics, Virginia Polytechnic Institute and State University, 24061, Blacksburg, VA, USA

    Thomas Johnson (Assistant Professor)

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  1. Thomas Johnson
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Johnson, T. A continuous Leontief dynamic input-output model. Papers of the Regional Science Association 56, 177–188 (1985). https://doi.org/10.1007/BF01887911

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