Using the spectral radius to determine whether a Leontief system has a unique positive solution

Using the spectral radius to determine whether a Leontief system has a unique positive solution

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Article ID: iaor20032953
Country: Singapore
Volume: 19
Issue: 2
Start Page Number: 233
End Page Number: 247
Publication Date: Nov 2002
Journal: Asia-Pacific Journal of Operational Research
Authors: ,
Keywords: numerical analysis
Abstract:

The Hawkins–Simon condition is a well-known method used to determine the existence of a unique positive solution of a static Leontief system. A method that is sometimes easier to apply is the spectral radius condition. A derivation of the spectral radius condition is presented, together with a computational method for calculation of the spectral radius of the input–output matrix. In addition, several useful bounds are derived for the spectral radius.

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