Questions:
Linear Algebra : Leontief Input-Output Model and Real-World Applications
1. Why did Leontief use linear algebra techniques to create his model? Can you think of alternative methods?
2. What are the main strengths of his model?
3. Does it have any limitations (that you can think of)?
4. How might the Input-Output model be useful in the real world? (In other words, would anyone except an Economist be interested in the results?)