Abstract
In this chapter we discuss the notions of proportionality, linear and affine functions, and homogeneity. The matrix algebra is introduced to explain some linear, economic models (Leontieff, von Neumann). We discuss systems of linear equations and their solution in full detail. For this we need determinants, Cramer’s rule, and the inverse matrix. Further we discuss the Gauss algorithm. We finish introducing functions of vector variables to explain aggregation in economics.
Happiness is thinking everything is linear.
ED ADAMS
Adams State College Professor
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© 2016 Springer International Publishing Switzerland
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Eichhorn, W., Gleißner, W. (2016). Affine and Linear Functions and Transformations (Matrices), Linear Economic Models, Systems of Linear Equations and Inequalities. In: Mathematics and Methodology for Economics. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-23353-6_4
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DOI: https://doi.org/10.1007/978-3-319-23353-6_4
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Publisher Name: Springer, Cham
Print ISBN: 978-3-319-23352-9
Online ISBN: 978-3-319-23353-6
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