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An interindustry economic model with stochastic parameters: Use of non- normal deterministic equivalents. (English) Zbl 0636.90014

A new approach to the incorporation and use of uncertainty in Leontief input-output models is presented. This new approach considers the characterization of the technology coefficients and the demand vector as random variables with known probability distributions, instead of known precise quantities as considered previously in the general literature. The model output is the gross output required to satisfy intermediate and final demand scales. The paper proceeds to examine the analytical and computational requirements in the development of the new model, as it is applied to an actual two-sector economy.

MSC:

91B66 Multisectoral models in economics
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