The closed dynamic Leontief model. Solutions and interpretations

• Authors: Brody A.
• Languages of publication: HU

Abstracts

EN

The paper describes three solutions to the closed (homogenous) dynamic model, all leading to an identical growth rate and the same price and quantitative proportions. However, the different operations performed with the data for the current and capital-outlay coefficients mean that the three versions produce dissimilar matrices. Three disparate, but not mutually contradictory economic and theoretical interpretations are possible. It also emerges that calculation of the equilibrium position does not rest on maximization in the case of any of the methods. Efforts to maximize profits or growth depart from the equilibrium path instead of approaching it. For this reason, disproportionate capacities accumulate.

Keywords

EN

EQUILIBRIUM; GROWTH RATE; LEONTIEF'S CLOSED DYNAMIC MODEL

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Academy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2004
• Volume: 51
• Issue: 10
• Pages: 924-935
• Document type: ARTICLE

Contributors

author

Brody A.

• A. Brody, address not given, contact the journal editor

Identifiers

CEJSH db identifier

06HUAAAA00651634