1. Leontief Input-Output Model
Becky Siegel
Carson Finkle
April

2. What is the model about?
Used to describe the relationship of industries within a sector
International
National
Regional
Within a business

3. Assumptions of the Model
Fixed proportions of inputs
Demand is met fully without a surplus or shortage
Internally for closed model
Internally + external demand for open model

4. The Equation (closed)
Let C be a consumption matrix such that and X be the production vector such that
Economic Activities
Inputs to Energy
Inputs to Manufacturing
Inputs to Services
Total Production
Energy .2 .3 ?
Manufacturing .5
Services

5. Closed Model
Energy
Manufact-uring
Services

8. The Equation (open)
Let C be a consumption matrix such that and X be the production vector such that

9. Open Model
Labor
Transportation
External Demand
Food

10. Solving for x vector

12. Just for fun…

14. Wrap Up
Contributions
Limitations
Conclusions