An Armington–Leontief model
Abstract We develop a novel linear equilibrium model with an Armington flavor. We provide (1) proof of the solvability of the model and of the existence and non-negativity of the equilibrium solution and of the newly derived multiplier matrix; we also show (2) that the standard Leontief multiplier m...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2019-07-01
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| Series: | Journal of Economic Structures |
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| Online Access: | http://link.springer.com/article/10.1186/s40008-019-0158-y |
| Summary: | Abstract We develop a novel linear equilibrium model with an Armington flavor. We provide (1) proof of the solvability of the model and of the existence and non-negativity of the equilibrium solution and of the newly derived multiplier matrix; we also show (2) that the standard Leontief multiplier matrix arises as a special case of this new model and (3) that this model allows the computation of multiplier effects with no external output bias, which is particularly relevant for applied economic analysis. |
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| ISSN: | 2193-2409 |