Some applications of spectral theory of nonnegative matrices to input-output models (Q5954854)

Nonnegative matrices are considered in the (lower triangular) Frobenius normal form.NEWLINENEWLINENEWLINEA necessary and sufficient condition is given for the existence of a unique positive eigenvector \(R\) of such a matrix \(T\). In the case of reducible matrices \(T\) the concept of the basic characteristic subvector of \(T\) is introduced and it is emphasized that the eigenvector \(R\) has a basic characteristic subvector \(R_1\) and each remnant component of \(R\) is positive and it is a linear function of the components of \(R_1\); the analytic expression of this linear function is given. This result is applied to obtain a necessary and sufficient condition for the existence of a unique positive eigenvector of the iteration matrix \(M^{-1}N\) where \(M-N\) is an \(M\)-splitting (i.e. \(M\) is a nonsingular \(M\)-matrix and \(N\) is a semipositive square matrix).NEWLINENEWLINENEWLINEA necessary and sufficient condition is derived for the existence and uniqueness of a balanced growth solution (BGS) for the Leontief dynamic input-output model and the economic meaning of these concepts and results is emphasized.NEWLINENEWLINENEWLINEBy duality, similar results for the existence and uniqueness of both BGS and production prices are obtained. Some examples illustrate the usefulness of this theory.