A dynamic Leontief model for a productive system

Abstract

Static input-output analysis of economic systems via Leontief matrices and related concepts has been well known for many years. There have been Various attempts to extend this to dynamic systems. A dynamic model is proposed in this paper which takes advantage of the Leontief matrix formulation. This model makes possible the description of the dynamic transition from one state of production to another. It is also shown how labor affects this transition as well as how uncertainty enters in.

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