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Rough Input Output UP

The document discusses the input coefficient matrix used in industries to determine the amount of input required to produce one unit of output. It outlines the primary input requirements, final demand, and the relationships between different industries, specifically focusing on coal and steel production. Additionally, it includes various equations and calculations related to output levels and input requirements for multiple industries.

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rafatanha804
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16 views

Rough Input Output UP

The document discusses the input coefficient matrix used in industries to determine the amount of input required to produce one unit of output. It outlines the primary input requirements, final demand, and the relationships between different industries, specifically focusing on coal and steel production. Additionally, it includes various equations and calculations related to output levels and input requirements for multiple industries.

Uploaded by

rafatanha804
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Input Coefficient:

The amount of input used by industry from industry in


order to produce one unit output of industry
The amount of input used by industry from industry
in order to produce one unit output of industry
The amount of input used by industry from industry
in order to produce one unit output of industry
The amount of input used by industry from itself in
order to produce one unit output of industry
The amount of input used by industry from itself in
order to produce one unit output of industry
More Specifically
Industry is used amount of input from
industry in order to produce one unit of output.
Industry is used amount of input from
industry in order to produce one unit of output.
Industry is used amount of input from
industry in order to produce one unit of output.
Industry is used amount of input from
industry in order to produce one unit of output.
Industry is used amount of input from
itself in order to produce one unit of output.
Industry is used nothing from Industry in order
to produce one unit of output.
Industry is used nothing from itself in order to
produce one unit of output.
Input Coefficient Matrix
Let, there are n numbers of industries i.e. 1, 2, 3……..n

Meaning of the Column Sum of Input Coefficient Matrix


1. First column sum, ……………………… ∑

Total input requirement of industry I in order to produce one unit of output

2. Second column sum, …………………… ∑

Total input requirement of industry II in order to produce one unit of output

3rd column sum and nth column sum=?

Primary Input Requirement


Labor is the primary input

Primary input requirement of industry I, ∑

Primary input requirement of industry II, ∑

Primary input requirement of industry III,


Final Demand
The portion of output used by household sector is known as final demand.

Let final demand of industry I, II III………N are designated by


respectively,

Final demand vector,

[ ]

Output Matrix
Let output of industry I, II III………N are designated by
respectively,

Output Matrix,

[ ]

Specific Input-Output Matrix Equation

Total Output of Industry I

…………(i)
Total Output of Industry II

…………….(ii)

Total Output of Industry III

……………………………………………………………..

…… (iii)

The corresponding equation for industry N

……….(iv)

Rewrite the equations

…………………………………………………………………….

In Matrix notation,
[ ] [ ] [ ]

From,
1. Given, and

[ ] [ ]

Where, Input coefficient matrix and Final demand vector.

(a) Write the meanings of and .

(b) Write the meanings of and .

(c) Write down the meaning of first column sum.

(d) Find out the primary input requirement of industry-I.

2. Given, [ ] [ ]

i. Write out the economic meanings of ,&

ii. What does first column sum of input coefficient matrix measure?

iii. Find solution output levels of three industries.

iv. Compute the amount of output of industry I that is taken by all three industries as input.

v. Compute the amount of output of industry II that is taken by all three industries as input.

vi. Compute the amount of output of industry III that is taken by all three industries as input.

vii. What is the amount of total primary input requirement of three industries?
i. Write out the economic meanings of ,&

Industry is used amount of input from itself in order to produce


one unit of output.

Industry is used 0.15 amount of input from itself in order to


produce one unit of output.

Industry I is used 0.6 amount of input from industry in order to


produce one unit of output.

Industry II is used nothing from itself in order to produce one unit of


output.

Refers to the final consumption of industry’s I output.

ii. What does first column sum of input coefficient matrix measure?

Input requirement of industry I is 0.9 in order to produce one unit of output.

iii. Find solution output levels of three industries.

We know, Specific Input-Output Matrix Equation, ………….(i)

Where, Technology Matrix

Output Matrix,

Final Demand Vector

Now,
[ ] [ ] [ ]

From Equation (i),

[ ][ ] [ ]

T X= d

| | | |

| | | |

| | | |

| | | |

According to Cramer’s rule

| |
| |

| |
| |
| |
| |
iv. Compute the amount of output of industry I that is taken by all three industries as input.

We have, input coefficient matrix, [ ]

Here,

Therefore, the amount of output of industry I that is taken by all three industries as input

v. Compute the amount of output of industry II that is taken by all three industries as input.

Do yourselves

vi. Compute the amount of output of industry III that is taken by all three industries as input.

Do yourselves
vii. What is the amount of total primary input requirement of three industries?

[ ]

Total input requirement of industry I, ∑

Therefore, primary input requirement of industry I, ∑


=

Total primary input requirement of industry I,

Total input requirement of industry II, ∑

Therefore, primary input requirement of industry II, ∑

Total primary input requirement of industry II,

Total input requirement of industry III, ∑

Therefore, primary input requirement of industry III, ∑

Total primary input requirement of industry III,

Therefore the amount of total primary input requirement of three industries


3. An economy produces only coal and steel. These two commodities serve as
intermediate inputs in each other’s production. 0.4 tonne of steel and 0.7 tonne of
coal are needed to produce a tonne of steel. Similarly 0.1 tonne of steel and 0.6
tonne of coal are required to produce a tonne of coal. Household sector needs 100
tonnes of coal and 50 tonnes of steel-

i. Write the input coefficients


ii. Mention the input coefficient matrix
iii. Write down final demands
iv. Compute the technology matrix
v. Calculate the gross output of the two commodities.

Let, coal industry is denoted by I


And steel industry is denoted by II
i. The input coefficients are

ii. The input coefficient matrix is,

[ ]

[ ]

iii. Final Demands

[ ]

iv. The technology matrix,


[ ] [ ] [ ]

v. Calculate the gross output of the two commodities.

We know, Specific Input-Output Matrix Equation, ………….(i)

Here, [ ] [ ], [ ]

Do Yourselves

Home work
1.

2.

needed to produce a tonne of B.


i. Write the input coefficients
ii. Mention the input coefficient matrix
iii. Write down final demands
iv. Compute the technology matrix
v. Calculate the gross output of the two commodities.

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