The Static Input-Output Model with more than One Nonproducible Factor of Production

Abstract

There is no mathematical difficulty to extend the model to more than one nonproducible (original) input. Let there be r original inputs. The number of input output ratios per industry is then r + n. Again we can define production functions

$${x_j} = {x_j}\left( {{l_{1j}}, \cdot \cdot \cdot \cdot {l_{rj}},{y_{1j}}, \cdot \cdot \cdot \cdot {y_{nj}}} \right)$$

where the l_kj represent direct original inputs in the j-th industry. Let us call b_kj the input output ratio of original input k and output j. Let B = (b_kj) be the r times n matrix of these input output ratios. Let w be the vector of prices of the original inputs.