Leontief Input-output Model Research Articles

Existence and uniqueness of solutions for Leontief's Input–Output Model, graph theory and sensitivity analysis

We provide a complete study of existence and uniqueness (uniqueness up to multiples in the case d = 0 ) of non-negative and non-trivial solutions x for the linear system ( I − A ) x = d with A ≥ 0 , d ≥ 0 (which, in particular, applies to Leontief's Input–Output Model). This study is done in terms of the block triangular form of the matrix A and is related to a directed graph associated to A . In particular, this study of existence and uniqueness up to multiples of solutions provides a framework that allows us to rigorously perform a sensitivity analysis of the normalized solutions of the linear system ( I − A ) x = d .

A comparison of evolutionary algorithms on a Large Scale Many-Objective Problem in Food–Energy–Water Nexus

Food, energy, and water resources form a complex system called Food–Energy–Water Nexus (FEWN) that is crucial for the survival of human beings. These resources interact with each other in a way that achieving the objectives of one can conflict with the objectives of the others. Therefore, there is a need to have approaches such as Multi-Objective Optimization Evolutionary Algorithms (MOEAs) to address the conflicting objectives in FEWN. However, MOEAs are inefficient in solving problems with more than 3 objectives and with at least 100 decision variables. In recent years Large-Scale Many-Objectives Optimization Evolutionary Algorithms (LSMaOEAs) have been developed to solve such problems. The performance of these algorithms has been tested on some real-world applications and benchmark problems. However, evaluation of their performance on the Food–Energy–Water Nexus (FEWN) rarely appears in existing literature. In this paper we propose a Large-Scale Many-Objectives Problem in Food–Energy–Water Nexus (LSMaOPFEWN) that consists of 5 objectives and 315 decision variables. This problem is formulated as a Leontief Input–Output model that promotes sustainable consumption and production of resources in FEWN. Thereafter, we report experiments that evaluated the performance of selected LSMaOEAs on LSMaOPFEWN. Experimental results demonstrate that Linear Combination-based Search Algorithm (LCSA) performs better than 4 other selected algorithms due to its enhanced exploration and exploitation capability. This paper demonstrates that an algorithm utilizing dimensionality reduction techniques can be effective in solving a real world LMaOPFEWN.

Estimating the impact of green ESIF in Romania using input-output model

This study develops one of the first estimates of the effects of European Structural and Investment Funds (ESIF) in Romania, in the context of supporting the transition to a low carbon economy across sectors. Using the green Leontief Input-Output model for the Romanian economy, aggregated at the NACE Rev.2 economic sectors, the analysis decomposes the direct, indirect, and induced effects of ESIF on the reduction of greenhouse gas (GHG) emissions, following data related to both completed and contracted projects in the programming period 2014–2020. The empirical results reveal the minor, but positive, impact of ESIF on environmental degradation. Green funds under ESIF lead to a reduction of 1.14 million tonnes in the GHG emissions. Larger effects are expected due to the contribution of projects still under development, estimated to reduce GHG emissions by 4.48 million tonnes. Based on the results, the main policy implications were evidenced, given the important role that the state has to play in resource allocation and ensuring the efficiency of funds dedicated to green transition.

The Fishery Value Chain Analysis in Taiwan

Although the GDP of the fishery sector accounts for less than 0.3% of Taiwan’s GDP, there are many secondary and tertiary industries related to fisheries that add great value to the country’s economy. Therefore, when analyzing and calculating the output value and value added of the fishery sector, the relevance of these upstream and downstream industries should be considered jointly, and the value chain of the fishery industry should be studied and analyzed in order to truly present the value added created by fishery. This study aims to do this by first analyzing not only the primary fishery industry, but the value chain of the fishery industry at different stages such as fishery production, marine fishing, aquaculture, fishery processing, retail and services, and supportive systems. Then the value added of the whole fishery value chain to Taiwan’s GDP is estimated by using the Leontief input–output model, from the perspective of industry linkages and covering the period from 2011 to 2018. The empirical results suggest that the value added created by fishery and related industries accounted for 2.96% of the GDP in 2011, which rose to 3.11% in 2014, fell to 2.87% in 2015, rose to 2.93% in 2017, and fell to 2.84% in 2018. From 2011 to 2018, the amount of value added created by fisheries and related industries rose from NT$ 422.8 billion to NT$ 520.9 billion. The primary fishery sector has the largest contribution, followed by the fishery input sector, and transportation and sale service sector, and the fishery product processing sector has the lowest contribution rate. The empirical results provide important implications and references to the policy makers.

Research on the Input–Output Model of the Rural Agricultural Eco-Economic System Based on Emergy Theory

Based on the Wassily W. Leontief input–output model, this paper constructs an emergy input–output model of an agricultural eco-economic system based on emergy theory. This model overcomes three limitations of the traditional input–output model. First, the conversion rate of ecological energy is used to solve the problem posed by the fact that the material input–output table cannot be directly combined due to the different measurement units of different substances. Second, it transforms the research object from a pure economic system to an eco-economic system by adding resources and environmental factors. Third, this paper solves the problem posed by the fact that the value input–output model is greatly affected by inflation, and uses the model to analyze the input–output of Zoumajie town in Shuangfeng City, Hunan Province, China, by unifying dimension (solar energy value).

On the comparison of two approaches to intersectoral balance analysis

The diversification of the inter-industry connections of modern economies seriously hindered the analysis of production networks evolution and input-output balances projection, that traditionally was made by the Leontief Input-Output balance model. That is why the new approaches have begun to develop, that take into account the substitutability of products and services in modern supply networks. In this work we discuss the quality of the new approach to the intersectoral linkages analysis, that is based on the nonlinear model of resource allocation with Cobb-Douglas production technologies. We compare this approach with the traditional Leontief’s scheme of intersectoral connection studying. We make evaluations using the both of methods for large economies, that are on different stages of economic development.

Economic Impact of Mining through Linkages: A Case Study of 1980 and 2014 Production Linkages in Zimbabwe

The manner in which mining is linked to other sectors of the economy in production, the extent of those linkages, and the problems and constraints which limit the development of production linkages are critical questions in the context of optimizing the sector’s contribution to economic development in Zimbabwe. The primary objective of this study is to examine the extent of the production (upstream and downstream) linkages that the mining sector has created with the rest of the Zimbabwean economic sectors, their effect on the wider economy and how these linkages may be optimized. A mixed methodology is used comprising a quantitative analysis using the Leontief Input-Output model and secondary data to quantify the linkages for 1980, and a partial survey of mines and exploration companies. The results of the survey are used to update the key quantitative results to 2014 and to further explore qualitatively the nature of production linkages, and constraints and problems limiting their development. The study finds that downstream linkages were weak. There was insignificant beneficiation of minerals or other value-adding activities due to several constraints, among them, lack of support infrastructure and technical expertise, and huge financial requirements. Failure to maximize production of ‘development minerals’ was a contributory factor to low downstream linkages. Slightly significant direct and total upstream linkages existed with manufacturing, electricityand water, and transport and distribution sectors. The mining sector’s gross output multiplier was below but moderately comparable to those of other mining developing countries such as Chile. Upstream linkages were mainly constrained by lack of technical expertise and finance. Thus, overall production linkages were found to be weak. The paper makes several recommendations, among them, infrastructural development, increased primary production (for feed and market), larger expenditure on HRD and R&D, greater focus on development minerals and emphasis on incentives rather than penalties.

Production balance of the regional economy

The article is devoted to the creation of the material block of the Leontief input-output model. Its purpose is to reflect the activities of both production and trade enterprises, i.e., objects that create real GDP within each region of a particular territorial entity (including the entire economy of the Russian Federation). This activity involves the production/import of products on the territory of the region by all industries and its distribution among both manufacturing and commercial enterprises to ensure their functioning. In addition to displaying the trade part of these commodity flows, the novelty of the model is to take into account public procurement, the use, along with the standards of specific consumption of material resources/goods not only in production but also in trade. Formal relationships have also been developed between investment in scientific and technical development and the growth/reduction of resource costs for the production/sale of a unit of production. The model indicators are made up of parts - contributions from production and trade while having a multi-aspect representation, data sets of which are formed by annual, regional and industry sections, decomposed respectively into months, districts and corporations. This allows you to generate the necessary time series for calculations using hypercube data technology and implement them using 4GL generation languages. The model has relations that determine the desired values of its variable parameters based on economic growth including the saturation of the regional market with the products of the industry, an indicator of which is its consumption by the service sector. This indicator is greater than zero in the case of covering the needs of all other economic entities in the region and less than or equal to zero otherwise.

Climate Change Vulnerability and Key Adaptation Trajectory of the Regional Economic System

From the microperspective, climate change restricts human life in many aspects, and it affects the regional economic system from the macroperspective. The paper presents an inoperability input-output model (IIM) that is an extension approach of the Leontief input-output model. The IIM is able to provide a feasible methodology for measuring the impact of vulnerable economic factors on the whole economic system and identifying the key adaptation trajectory of the economic system. The IIM is applied in Tianjin to explore its dilemmas facing the increased demand for electricity, water, and public health service sectors under the RCP2.5, RCP4.5, and RCP8.5 climate scenarios. The results indicated that the inoperability ranking of all economic sectors is the same under the three climate scenarios. The key adaptation trajectory in Tianjin is S40, S27, S25, S17, S12, S02, S21, S16, S09, S24, S29, S33, S19, S13, and S15 sector in order. The costs required by the key adaptation trajectory to adapt to climate change account for more than 90% of that required by the whole economic system. These results can be helpful for policy-makers to prioritize sectors in terms of climate adaptation and understand the efficacy of climate change risk mitigation strategies.

Macroeconomic impacts of cigarette consumption in Pakistan

BackgroundPakistan has a large population of tobacco users, with about 24 million adults consuming tobacco products in one form or another. There is a dearth of research on the impact...

Guaranteed cost sliding mode control of Markovian jump Lur'e systems under Round‐Robin protocol

This study copes with the guaranteed cost problem for a class of Markovian jump Lur'e systems via sliding mode control technique, in which the scheduling of controller signals towards the actuators is regulated by the Round-Robin protocol. This means that at each transmission instant, only one actuator node can access the transmission network and the other actuators cannot obtain any new control information. In order to deal with this phenomenon, an updating rule as compensator is proposed, based on which the other actuators utilise the past control signals stored in the corresponding buffers. Then, a mode-token-dependent sliding mode controller is designed, in which the characteristic of the Lur'e non-linearities is involved. Furthermore, by introducing a new token-dependent Lur'e-type Lyapunov function, the stochastic stability of the resultant closed-loop systems is analysed, and the guaranteed cost performance is attained. Finally, a dynamic Leontief input–output model is adopted to illustrate the proposed method.

Inter-linkages among various components of dairy based farming systems in Mizoram State

Farming system approach has been widely recognized and advocated as one of the tools for harmonious use of inputs and their compounded response to make the production system sustainable. The present study was conducted to examine linkages among various components of farming systems in Mizoram state by using Leontief input-output model. The study identified 10 dairy based farming systems based on the major contribution to income of farm enterprise. The inter-component linkages from livestock to crop were stronger as compared to crop to livestock for all the farming systems. The degree of integration of different components of the various farming systems in terms of linkages is found to be strongest under D + C + P + Po farming systems. The interdependence observed among various components of farming system suggests the need to adopt total systems approach for development of sustainable farming systems.

Triangulation Applied to the Intra-European Union Tomato Market

An understanding of the intracommunity trade is essential for the agents involved in the fresh tomato market (farmers, entrepreneurs, public administrations, and consumers). The purpose of this paper is to analyze the interdependent relationships between exporting and importing countries within the European Union for a specific product such as fresh tomatoes and thus understand which have been the key countries in three specific years (2002–2007–2017). The methodology used to study the interrelationships of trade flows in the countries of the European Union (EU) is that of triangulation by means of the Leontief input-output model. Artificial intelligence techniques are used to process and triangulate the data based on pathfinding techniques using a cost function. The triangulation results have created a hierarchy of countries (suppliers and customers). This type of methodology has not been applied to the field of foreign trade. The results show that Netherlands and Spain are key countries in intracommunity trade as they have a strong impact both with regard to their exports and their imports and are fundamental when analyzing the growth of specific sectors and how they are able to stimulate the economies of other countries.

Electrification pathways for Tanzania: Implications for the economy and the environment

The role of electricity availability in promoting the economic growth of low-income countries is a highly debated issue. Taking the Tanzanian government’s view that a lack of infrastructure for power generation, together with a low electrification rate, are a limitation to growth, this paper studies the implications on the country’s sustainable development of expanding the electricity sector. The analysis is based on the joint use of the OSeMOSYS open-source power system optimization model and the Leontief Input-Output model (based on the Tanzanian Social Accounting Matrix). Four scenarios are considered, representative of alternative technological and environmental policies, characterized by different timing to achieve full electrification. Results indicate that while an expansion of the electricity sector can contribute significantly to economic growth, the associated direct and indirect growth in carbon emissions is equally remarkable. Relying on the country’s renewable generation potential would be important but might not be sufficient to lower the economy-wide carbon intensity, particularly under the assumption of reaching full access already in 2030. Targeting energy efficiency and/or decarbonization efforts in the industrial sectors as well as in the provisions of services would also be necessary. The latter is particularly relevant as, per effect of an average income increase, household consumption habits contributes to drive the economy away from its traditional, agricultural base.

Application of Input-Output Table for Structural Analysis of the Nation's Economy: A Case of Mongolia

The Leontief Input-Output model is a valuable tool for economics. Many economic research works are devoted to analysis of Input-Output table [1]-[5]. In this paper, we consider a separation of Copper production subsector from Mining of metal ores sector which is one of the 55 economic sectors of Input-Output Table of Mongolia. We examine impact of this subsector on other economic sectors using Input-Output table for 2016 and Physical Measurement Method of Cost Accounting [6]. We compute input coefficients of new extended matrix as well as inverse coefficients.

Solving Systems of Linear Equations under Conditions of Uncertainty on the Example of the Leontief Model

Abstract The paper presents various methods of solving systems of linear equations under conditions of uncertainty. In a situation when the parameters of such systems cannot be precisely determined with real numbers, they can be represented by interval numbers, fuzzy numbers or ordered fuzzy numbers. Solutions of systems of linear equations with such representations of parameters are shown in the example of Leontief input-output model. It has also been shown that when ordered fuzzy numbers are applied, their additional feature – orientation – can broaden and deepen economic analysis.

Performance of an Economy System Using Linear Algebraic Solution

This study is set out to examine a linear algebra approach to economy. The Leontief input-output model was used to determine the production vector for goods and services. Data were collected from three different sectors of the economy; they are poultry farm, a gas depot and a textile store. The result shows that the production vector x is positive which in turns implies that the Leontief input-output model is a good approach to determine the profitability of an economic system.

A new design and evaluation approach for managed lanes from a sustainability perspective

This article presents a comprehensive framework that optimizes traffic management measures to reduce emissions and fuel consumption and evaluates their operating and secondary environmental impacts. A new managed lane strategy is presented that minimizes the total passenger travel time on the freeway. This managed lane focuses on simultaneously optimizing toll schemes on the high occupancy toll (HOT) lane and the operation of the general purpose (GP) lanes. With reduced congestion and thus reduced number of acceleration and deceleration events associated with stop-and-go traffic, fuel efficiency increases and emissions are reduced. PARAMICS microscopic traffic simulator, which considers the behavior of individual vehicles (e.g., acceleration, deceleration, and lane changing behavior) is used to collect traffic performance and emission data for estimating mobility and emissions measures (i.e., operating phase). While previous studies only focused on operating phase impact, this study uses a Leontief input-output (I-O) model to establish the financial flow between industries to capture the large-scale environmental impacts of HOT lane deployment (i.e., secondary impact). The core of the new evaluation approach lies in its capability to provide a more thorough assessment of the environmental impacts of traffic management schemes by quantifying the impacts associated with the interplay between the activities of various sectors and the transportation industry. The I-O model is utilized to assess the indirect impacts of induced demand generated from network improvements and evaluate the environmental impacts of HOT lane deployment in regional economies. The developed approach is applied to The City of Calgary. The results of the study show that the traditional approaches that only evaluate the operating phase impacts of transportation strategies considerably overestimate the reduction of greenhouse gas (GHG) emissions.

Modelling critical infrastructure network interdependencies and failure

Critical infrastructures are fundamental systems that are interconnected with one another, and their interdependencies need to be modelled in order to analyse any vulnerabilities that exist in these infrastructure networks. In this work, a Leontief input-output model of the critical infrastructure systems and two physical critical infrastructure networks are developed. The input-output model serves to evaluate the interdependencies among the various infrastructure systems, while the physical infrastructure network describes the linkages within a single physical infrastructure system. This study examines the overall impact of any failures in the telecommunication infrastructure or electricity grid within the input-output interdependencies model systematically so as to evaluate the worst case scenarios based on the impact caused by one or more points of failure in the physical infrastructure.

Modelling critical infrastructure network interdependencies and failure

Critical infrastructures are fundamental systems that are interconnected with one another, and their interdependencies need to be modelled in order to analyse any vulnerabilities that exist in these infrastructure networks. In this work, a Leontief input-output model of the critical infrastructure systems and two physical critical infrastructure networks are developed. The input-output model serves to evaluate the interdependencies among the various infrastructure systems, while the physical infrastructure network describes the linkages within a single physical infrastructure system. This study examines the overall impact of any failures in the telecommunication infrastructure or electricity grid within the input-output interdependencies model systematically so as to evaluate the worst case scenarios based on the impact caused by one or more points of failure in the physical infrastructure.