Computing the Natural Factors of a Closed Expanding Economy Model.
CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
Pagination or Media Count:
In 1956 Kemeny, Morgenstern and Thompson published a generalization of von Neumanns expanding economy model and showed that there were a finite number of economically interesting expansion factors which in turn determine subeconomies. In 1967, Hamburger, Thompson and Weil showed how to compute the maximum and minimum expansion factors. In 1970-72 Thompson and Weil provided a characterization of the factors as generalized eigenvalues. In the present paper a constructive algorithm for finding all the natural factors of the closed model is presented. It is based on finding central solutions to matrix games and an improved version of the Hamburger, Thompson, Weil technique referenced to above. Author
- Economics and Cost Analysis