Leontief’s Economic Input-Output Model For Analyzing Inter-Sectoral Dependencies in the Economy
Abstract: Leontief is an economic model which has wide applications as a basis for more advanced models. In this project we simulate this model under different setups using different numerical approaches and preform some basic case studies which could be scaled up to larger systems and economies. We will also visually represent the correlations between these industries based on the relative prices/units produced.
This paper was made for a linear algebra course to illustrate the powerful tool of matrix manipulation and eigenvalues for the purpose of modelling an economy.
This work is based off of Leontief's work which had awarded him a nobel prize. Technical details were suplemented by Gilbert Strang's book.