Chapter 1.

Matrix Algebra

Le Cong Nhan

Visiting Lecturer at
University of Economic Ho Chi Minh City

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 1 / 52
 Contents

1 Matrix Algebra

2 Rank of a Matrix

3 Determinants

4 Inverse of a Matrix

5 Systems of Linear Algebraic Equations

6 Application: The Leontief Input-Output Model

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 2 / 52
 1.1 Matrix Algebra
Definition 1 (Matrix)
A matrix is any rectangular array of numbers or functions:
 
a11 a12 · · · a1n
 a21 a22 · · · a2n 
A= . .. .. 
 
 .. . . 
am1 am2 · · · amn

aij are called entries (or elements) in the ith row and jth colume of the
matrix.
the size of the matrix A = (aij )m×n is m by n (written m × n).

Definition 2 (Equality of Matrices)

Let A = (aij )m×n and B = (bij )m×n be two m × n matrices, then

A = B ⇐⇒ aij = bij .
Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter
Chi Minh City)
1. Matrix Algebra 3 / 52
 Special Matrices

1 Row vector: A matrix with one row:

A = a11 a22 ··· a1n 1×n

2 Column vector: A matrix with one column:

 
a11
 a21 
A= . 
 
 .. 
am1 m×1

3 Zero matrix: An m × n matrix whose all entries are zero, denoted by

0 = (0)m×n .

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 4 / 52
 1 A = (aij )n×n is called a square matrix or a matrix of order n. Then the
entries a11 , a22 , ..., ann are called the main diagonal entries.
2 Upper triangular matrix: A square matrix with property that all its entries
below the main diagonal are zeros.
 
a11 a12 ··· a1n
 0 a22 ··· a2n 
A= . .. .. 
 
 .. ..
. . . 
0 0 ··· ann

3 Lower triangular matrix: A square matrix with property that all its entries
above the main diagonal are zeros.
 
a11 0 ··· 0
a21 a22 ··· 0 
A= . .. ..
 
 .. .. 
. . . 
an1 an2 ··· ann

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 5 / 52
 1 Diagonal matrix: A square matrix with property that all its entries outside
the main diagonal are all zero.
 
a11 0 ··· 0
0 a22 ··· 0 
D= . .. ..
 
 .. .. 
. . . 
0 0 ··· ann

The entries aii can either be zero or nonzero.

2 Identity matrix: A diagonal matrix with aii = 1, denoted by In , where n is
the order of the matrix.
 
1 0 ··· 0
0 1 ··· 0
In =  . .. . . .. 
 
 .. . . .
0 0 ··· 1

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 6 / 52
 Matrix Operations

Let A = (aij )m×n and B = (bij )m×n be two m × n matrices

1 Matrix Addition:
 
a11 + b11 a12 + b12 ··· a1n + b1n
 a21 + b21 a22 + b22 ··· a2n + b2n 
A+B = .. .. ..  = (aij + bij )m×n
 
 . . . 
am1 + bm1 am2 + bm2 ··· amn + bmn

2 Scalar Multiple of a Matrix:

 
ka11 ka12 ··· ka1n
 ka21 ka22 ··· ka2n 
kA =  . .. ..  = (kaij )m×n
 
 .. . . 
kam1 kam2 ··· kamn

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 7 / 52
 Matrix Multiplication
Let A = (aij )m×p and B = (bij )p×n be matrices. The product AB is the m × n
matrix
  
a11 a12 ··· a1p b11 b12 ··· b1n
 a21 a22 ··· a2p  b21 b22 ··· b2n 
AB =  .. .. .. .. .. ..
  
 
 . . .  . . . 
am1 am2 ··· amp bp1 bp2 ··· bpn

 
a11 b11 + a12 b21 + · · · + a1p bp1 ··· a11 b1n + a12 b2n + · · · + a1p bpn
 a21 b11 + a22 b21 + · · · + a2p bp1 ··· a21 b1n + a22 b2n + · · · + a2p bp2 
=
 
.. .. 
 . . 
am1 b11 + am2 b21 + · · · + amp bp1 ··· am1 b1n + am2 b2n + · · · + amp bp2

p
!
X
= aik bkj
k=1 m×n

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 8 / 52
 Properties of Matrix Operations

1 A+B =B +A
2 (A + B) + C = A + (B + C )
3 A+0=0+A=A
4 (k1 k2 )A = k1 (k2 A)
5 1A = A
6 k(A + B) = kA + kB
7 (k1 + k2 )A = k1 A + k2 A
8 (AB)C = A(BC )
9 Am×n In = Am×n = Im Am×n
10 A(B + C ) = AB + AC

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 9 / 52
 Definition 3 (Transpose of a Matrix)
The transpose of the m × n matrix A = (aij )m×n is the n × m matrix AT given by
   
a11 a12 · · · a1n a11 a21 · · · am1
 a21 a22 · · · a2n   a12 a22 · · · am2 
A= . .. ..  =⇒ AT =  .. .. ..
   
 ..

. .   . . . 
am1 am2 ··· amn a1n a2n · · · amn

Properties of Transpose
Suppose A and B are matrices and k a scalar. Then
1 (AT )T = A
2 (A + B)T = AT + B T
3 (AB)T = B T AT
4 (kA)T = kAT

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 10 / 52
 1.2 Rank of a Matrix

Definition 4 (Row-Echelon Form)

A rectangular matrix is in row-echelon form if it holds:
(i) Rows consisting of all zeros are at the bottom of the matrix.
(ii) In consecutive nonzero rows, the leading entry (first nonzero entry) in the
lower row appears to the right of the one in the higher row.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 11 / 52
 Elementary Row Operations
1 Interchange rows i and j: Ri ←→ Rj
2 Multiply the ith row by the nonzero constant α: αRi −→ Ri
3 Multiply the jth row by α and add to the ith row: Ri + αRj −→ Ri

Definition 5 (Rank of a matrix)

If a matrix A is row equivalent to a row-echelon form B, then the rank of the
matrix A, denoted by rank(A) or r (A)

rank(A) = the number of nonzero rows in B.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 12 / 52
 Example 6
Find the rank of the matrix
   
1 −2 3 4 1 2 3
1 4 6 8 4 5 6
a) 
0
 b)  
1 0 0 7 8 9
2 5 6 8 10 m 12

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 13 / 52
 1.3 Determinants

Definition 7
 
a11 a12
A deteminant of A = is the number
a21 a22

a11 a12
det(A) = = a11 a22 − a21 a12
a21 a22

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 14 / 52
 Definition 8
 
a11 a12 a13
A deteminant of A = a21 a22 a23  is the number
a31 a32 a33

a11 a12 a13

det(A) = a21 a22 a23 =a11 a22 a33 + a12 a23 a31 + a13 a21 a32
a31 a32 a33
− a31 a22 a13 − a32 a23 a11 − a33 a21 a12 .

Hình: Rule of Sarrus of Deteminant Hình: Rule of Sarrus of Deteminant

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 15 / 52
 Definition 9 (Cofactor)
Let A = (aij )n be a square matrix. The cofactor of aij is the number Cij given by

Cij = (−1)i+j Mij

where Mij is the determinant of the submatrix obtained by deleting the ith row
and the jth column of A.

Theorem 10 (Laplace expansion)

(a) the cofactor expansion of detA along the ith row

detA = ai1 Ci1 + ai2 Ci2 + · · · + ain Cin (1)

(b) the cofactor expansion of detA along the jth column

detA = a1j C1j + a2j C2j + · · · + anj Cnj (2)

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 16 / 52
 Properties of Determinants

1 If any two rows (columns) of an n × n matrix A are the same, then detA = 0.
2 If all the entries in a row (column) of an n × n matrix A are zero, then
detA = 0.
3 detAT = detA
4 det(AB) = detA · detB
Ri ↔Rj
5 If A −−−−→ B, then detB = −detA
αR →R
6 If A −−−i −−→
i
B, α ̸= 0, then detB = α · detA
Ri +αRj →Ri
7 If A −−−−−−−→ B, then detB = detA
8 Suppose A = (aij )n is an triangular matrix (upper or lower). Then

detA = a11 a22 · · · ann .

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 17 / 52
 Example 11
Evaluate the determinant of A
 
6 2 7
A = −4 −3 2
2 4 8

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 18 / 52
 Example 12
Without expanding, show that detA = 0
 
1 1 1
A= x y z
y +z z +x x +y

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 19 / 52
 Example 13
Without expanding, show that

1 1 1
a b c = (b − a)(c − a)(c − b).
a2 b2 c2

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 20 / 52
 1.4 Inverse of a Matrix

1 Definition + Properties
2 Method of finding an inverse of a matrix:
Adjoint method (Sử dụng ma trận phụ hợp):
1
A−1 = adj A
det(A)

where adj A = (Cij )T with Cij is the cofactor of aij .

Using the elementary row operations (Gauss-Jordan method)
elementary
(A|In ) −−−−−−−→ (In |B) .
row operations

And then, A−1 = B.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 21 / 52
 Definition 14 (Inverse of a Matrix)
Let A be an n × n matrix. If there exists an n × n matrix B such that

AB = BA = In (3)

where In is the n × n identity, then the matrix A is said to be nonsingular or

invertible. The matrix B is said to be the inverse of A.

Properties of the Inverse

Let A and B be nonsingular matrices. Then
1 (A−1 )−1 = A
2 (AB)−1 = B −1 A−1
3 (AT )−1 = (A−1 )T
4 (kA)−1 = k −1 A−1 ) for k ̸= 0.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 22 / 52
 Definition 15 (Adjoint Matrix)
Let A be an n × n matrix. The adjoint of A, denoted by adj A is the transpose of
the matrix of cofactors corresponding to the entries of A:
 T  
C11 C12 ··· C1n C11 C21 ··· Cn1
C21 C22 ··· C2n  C12 C22 ··· Cn2 
adj A =  . .. ..  =  .. .. .. 
   
 .. . .   . . . 
Cn1 Cn2 ··· Cnn C1n C2n ··· Cnn

Theorem 16 (Finding the Inverse)

Let A be an n × n matrix. If det A ̸= 0, then
1
A−1 = adj A (4)
det A

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 23 / 52
 Row Operations Method

 
a11 a12 ··· a1n 1 0 ··· 0
a21 a22 ··· a2n 0 1 ··· 0
(A|In ) = . .. .. .. .. .. 
 
| {z }  .. . . . . .
partitioned matrix
an1 an2 · · · ann 0 0 · · · 1
 
1 0 · · · 0 b11 b12 ··· b1n
0 1 · · · 0 b21 b22 ··· b2n 
elementary
−−−−−−−−→  . . .. .. .. ..  = (In |B)
 
row operations  .. .. . . . . 
0 0 · · · 1 bn1 bn2 ··· bnn

Then B is the inverse of A, i.e., A−1 = B.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 24 / 52
 Example 17
Find the inverse of A
 
1 1 3
A = 1 2 2
2 2 5

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 25 / 52
 Example 18
Let A be an 3 × 3 matrix. Find m so that A is invertible and then find its inverse
 
2 1 2
A= 3 2 6
−1 1 m

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 26 / 52
 1.5 Systems of Linear Algebraic Equations

1 Introduction: systems of linear equations

AX = B, (5)

where A is coefficient matrix, B is constant matrix and X is variable matrix.

2 Solving systems of linear equations:
Gaussian elimination method
Cramer’s rule
3 Applications:
Economics: input-output model
Network flows:
+ traffic flows
+ distribution of products from manufacturers to consumers through a network of
wholesalers and retailers

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 27 / 52
 Introduction

A system of m linear equations in n variables x1 , x2 , .., xn has the general form

a11 x1 + a12 x2 + · · · + a1n xn = b1

a21 x1 + a22 x2 + · · · + a2n xn = b2
.. .. (6)
. .
am1 x1 + am2 x2 + · · · + amn xn = bm

where aij are called coefficients and bi are called constants of the system.
     
a11 a12 · · · a1n x1 b1
 a21 a22 · · · a2n  x2   b2 
 .. .. ..  ·  ..  =  .. . (7)
     
 . . .  .  . 
am1 am2 · · · amn xn bm
| {z } | {z } | {z }
A X B

If all the constants are zero, the system (6) is said to be homogeneous; otherwise
it is nonhomogeneous.
Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter
Chi Minh City)
1. Matrix Algebra 28 / 52
 Augmented Matrix

Linear system of equations (6) can be rewritten as following matrix equation:

     
a11 a12 · · · a1n x1 b1
 a21 a22 · · · a2n  x2   b2 
 .. .. ..  ·  ..  =  .. . (8)
     
 . . .  .  . 
am1 am2 · · · amn xn bm
| {z } | {z } | {z }
A X B

The augmented matrix of the system is the matrix:

 
a11 a12 ··· a1n b1
 a21 a22 ··· a2n b2 
A = (A | B) =  . .. .. ..  (9)
 
 .. . . . 
am1 am2 ··· amn bm

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 29 / 52
 Definition 19 (Solution)
A solution of a linear system (6) is a set of n numbers (x1 , x2 , ..., xn ) that satisfies
each equation in the system.

1 Two system of equations are called equivalent iff they have the same
solution set.
2 A linear system of equations is said to be consistent if it has at least one
solution, and inconsistent if it has no solutions.
3 If a linear system is consistent, it has either
a unique solution (that is, precisely one solution), or
infinitely many solutions.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 30 / 52
 Solving a Linear System of Equations
Method 1: Gaussian Elimination Method

Let us consider the linear system of equations

a11 x1 + a12 x2 + · · · + a1n xn = b1

a21 x1 + a22 x2 + · · · + a2n xn = b2
.. ..
. .
am1 x1 + am2 x2 + · · · + amn xn = bm

The matrix of the system

 
a11 a12 ··· a1n b1
 a21 a22 ··· a2n b2 
A= . .. .. .. 
 
 .. . . . 
am1 am2 ··· amn bm

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 31 / 52
 Idea of the Gaussian method

elementary
A } −−−−−−−−→ B }
| {z row operations | {z
augmented matrix reduced echelon-form

Theorem 20 (Định lý Cronecker-Carpelli)

Cho hệ phương trình tuyến tính AX = B gồm m phương trình và n ẩn số. Khi đó
ta có các khẳng định sau:
1 Nếu r (A) = r (A) thì hệ phương trình có nghiệm.
r (A) = r (A) = n thì hệ phương trình có nghiệm duy nhất.
r (A) = r (A) < n thì hệ phương trình có vô số nghiệm phụ thuộc vào (n − r )
ẩn số tự do.
2 Nếu r (A) < r (A) thì hệ phương trình vô nghiệm.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 32 / 52
 Example 21
Solving the linear system of equations

x1 − 5x3 = −1

2x1 + 8x2 = 7

x2 + 9x3 = 1


Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 33 / 52
 Example 22
Solving the linear system of equations

x + y − 3z = 1

2x + y + mz = 3

x + my + 3z = 2.


Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 34 / 52
 Solving a Linear System of Equations
Method 2: Cramer’s Rule

For a system of n linear equations in n variables

a11 x1 + a12 x2 + · · · + a1n xn = b1

a21 x1 + a22 x2 + · · · + a2n xn = b2
.. ..
. .
an1 x1 + an2 x2 + · · · + ann xn = bn

Let A = (aij )n×n be the coefficient matrix and B = (bi )n×1 be the constant matrix
of the system and define a special matrix
 
a11 a12 · · · a1 k−1 b1 a1 k+1 ··· a1n
a21 a22 · · · a2 k−1 b2 a2 k+1 ··· a2n 
Ak =  . .. .. .. .. ..  (10)
 
 .. . . . . . 
an1 an2 · · · an k−1 bn an k+1 ··· ann

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 35 / 52
 Theorem 23 (Cramer’s rule)
1 Nếu det(A) ̸= 0 thì hệ phương trình có nghiệm duy nhất và nghiệm cho bởi:

det(A1 ) det(A2 ) det(An )

x1 = , x2 = , ...... xn = .
det(A) det(A) det(A)

2 Nếu det(A) = 0 và tồn tại det(Ai ) ̸= 0 thì hệ phương trình vô nghiệm.

3 Nếu det(A) = 0 và det(Ai ) = 0 với i = 1, 2, ..., n thì hệ phương trình vô
nghiệm hoặc có vô số nghiệm.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 36 / 52
 Example 24
Solving the linear system of equations

3x1 + 2x2 + x3 = 7

x1 − x2 + 3x3 = 3

5x1 + 4x2 − 2x3 = 1.


Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 37 / 52
 Example 25
Solving the linear system of equations

x + y − 3z = 1

2x + y + mz = 3

x + my + 3z = 2.


Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 38 / 52
 Hệ phương trình tuyến tính thuần nhất

Hệ phương trình tuyến tính thuần nhất là hệ có dạng

a11 x1 + a12 x2 + · · · + a1n xn = 0

a21 x1 + a22 x2 + · · · + a2n xn = 0
.. .. (11)
. .
am1 x1 + am2 x2 + · · · + amn xn = 0

hay có dạng phương trình ma trận AX = 0. Lưu ý rằng hệ phương trình (11) luôn
tương thích do (0, 0, ..., 0) luôn là nghiệm của (11). Đây được gọi là nghiệm tầm
thường (trivial solution).

Theorem 26 (Sự tồn tại nghiệm không tầm thường)

Hệ phương trình thuần nhất AX = 0 có nghiệm không tầm thường nếu r (A) < n.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 39 / 52
 Theorem 27 (Tính chất của hệ thuần nhất)
Cho hệ phương trình thuần nhất AX = 0. Khi đó ta có các khẳng định sau:
(i) Nếu X1 là một nghiệm của hệ AX = 0 thì cX1 cũng là nghiệm, với c ∈ R.
(ii) Nếu X1 và X2 là hai nghiệm của hệ AX = 0 thì X1 + X2 cũng là nghiệm.

Example 28
Chứng tỏ rằng các hệ phương trình thuần nhất sau có nghiệm không tầm thường
và hãy tìm tập nghiệm của chúng

3x1 + 5x2 − 4x3 = 0

a) −3x1 − 2x2 + 4x3 = 0 b) x + y − 2z = 0.

6x1 + x2 − 8x3 = 0


Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 40 / 52
 1.6 The Leontief Input-Output Model

Suppose a nation’s economy is divided into n sectors that produce goods or services,
let us denote:
1 X = (x1 , x2 , ..., xn ) ∈ Rn to be the production vector: the output of each
sector for a period of time.
2 D = (d1 , d2 , ..., dn ) ∈ Rn to be the final demand vector (open sector): the
value of goods and services demanded from the various sectors by the
nonproductive part of the economy. The vector D can represent consumer
demand, government consumption, surplus production, exports, or other
external demand.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 41 / 52
 Problem

Find the relation between the final demand D and the production vectors X ?

   
x1 d1
 x2  d2 
  internal demand
X =  .  −−−−−−−−−→ D =  .  (12)
 
 ..  (in production)  .. 
xn dn

Leontief input-output model: Find the amount produced (supplied) X that will
exactly balance the total demand for that production, so that
     
amount produced internal demand external demand
= + (13)
X C D

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 42 / 52
 Assumption

The basis assumption of the Leontief’s input-output model is that for each sector,
there is a unit consumption vector in Rn that lists the inputs needed per unit of
output of the sector. For example, the unit consumption vector for the ith sector is
 
a1i  
a2i  the inputs needed
Ai =  .  to produce (14)
  
 .. 
1 unit of the i th sector
ani

where aij is the proportion of the total output of sector i that provide (as "input")
for the sector j to produce 1 unit of the j th sector.
n
X
aki = a1i + a2i + · · · + ani < 1. (15)
k=1

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 43 / 52
 Example

Hình: Input-output matrix

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 44 / 52
 Finding the Leontief Matrix

Hình: Input-output Analysis

The Leontief matrix is

1 1
5 3
A= 
3 2
 
10 15

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 45 / 52
 Solution
XX
XXX Inputs
Sector 1 Sector 2 ··· Sector n External demand
Outputs
XXX
XX
Sector 1 a11 a12 ··· a1n d1
Sector 2 a21 a22 ··· a2n d2
.. .. .. .. ..
. . . . .
Sector n an1 an2 ··· ann dn
X A1 A2 ··· An D
Bảng: Input-output matrix

To balance the input-output of the sector i we must have:

a x + a2i xi + · · · + ani xi + d = xi (16)

| 1i i {z } | {zi }
input from the sector 1,2,..,n external demand for sector i
Pn
So it implies that a0i = 1 − k=1 aki = di /xi which is the proportion of the open
sector that provide for the sector i to produce 1 unit of the sector i.
Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter
Chi Minh City)
1. Matrix Algebra 46 / 52
      
the total output of the total input that sector i external demand
= +
the sector i provides for sectors 1, 2, ..., n for sector i
| {z } | {z } | {z }
xi ai1 x1 + ai2 x2 + · · · + ain xn di

Leontief Model for an nation’s economic at equilibrium state:

     
x1 a11 x1 + a12 x2 + · · · + a1n xn d1
x2   a21 x1 + a22 x2 + · · · + a2n xn  d2 
 ..  =  ..  +  .. . (17)
     
.  .  .
xn an1 x1 + an2 x2 + · · · + ann xn dn
| {z } | {z } | {z }
X C D

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 47 / 52
        
x1 a11 a12 ··· a1n x1 d1
x2  a21 a22 ··· a2n  x2  d2 
 ..  =  .. .. ..  ·  ..  +  .. , (18)
       
.  . . .  . .
xn an1 an2 ··· ann xn dn
| {z } | {z } | {z } | {z }
X A X D

where A is so-called the Liontief matrix.

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 48 / 52
 Application of the Inverse (In − A)−1

The system can be rewritten as (In − A) X = D and its solution vector is given by
−1
X = (In − A) D. (19)

1 For a reasonable interval of time, the Leontief matrix may expect to remain
constants. For a variety of demands Dk , k = 1, 2, ..., m, to determine the
respective production Xk required to satisfy Dk one has only to calculate

Xk = (In − A)−1 Dk . (20)

2 If the external demand D changes a quantity ∆D = (∆d1 , ∆d2 , ..., ∆dn ),

then the production X changes a quantity

∆X = (In − A)−1 ∆D. (21)

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 49 / 52
 Example 29
Trong mô hình Input-Output mở Leontief, biết ma trận đầu vào
 
0, 1 0, 2 0, 2
A = 0, 2 0, 2 0, 3
0, 2 0, 3 0, 4

1 Nêu ý nghĩa kinh tế của hệ số a23 .

2 Tìm giá trị sản lượng của ba ngành, biết rằng nhu cầu của ngành mở đối với
ba ngành là (75, 90, 81).
3 Tìm giá trị sản lượng của ba ngành với điều kiện bổ sung: do cải tiến kỹ
thuật ở ngành 1 tiết kiệm được 25% nguyên liệu của ngành 2, còn nhu cầu
cuối cùng của ngành mở đối với ba ngành là vẫn là (75, 90, 81).

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 50 / 52
 Example 30
Trong mô hình Input-Output mở Leontief, biết ma trận đầu vào
 
0, 1 0, 2 0, 2
A = 0, 2 0, 2 0, 3
0, 2 0, 3 0, 4

1 Khi ngành 3 phải cung cấp 600 (đơn vị tiền tệ) cho ngành 2 thì giá trị sản
lượng của ngành 2 là bao nhiêu?
2 Giả sử nhu cầu cuối cùng của ngành mở đối với ba ngành lần lượt là d1 , d2
và d3 . Nếu d1 tăng 2 (đơn vị tiền tệ), d2 giảm 1 (đơn vị tiền tệ), d3 giảm 1
(đơn vị tiền tệ) thì giá trị sản lượng của ba ngành thay đổi thế nào?

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 51 / 52
 Example 31
Trong mô hình Input-Output mở Leontief, biết ma trận đầu vào
 
0, 1 0, 2 0, 2
A = 0, 2 m 0, 3
0, 2 0, 3 0, 4

1 Giải thích ý nghĩa kinh tế của hệ số a23 . Từ đó tính số tiền mà ngành 2 phải
đóng góp cho ngành 3 khi giá trị đầu ra của ngành 3 là 200 (đơn vị tiền tệ).
2 Giải thích ý nghĩa kinh tế của hệ số a03 . Từ đó suy ra ngành mở phải đóng
góp bao nhiêu cho ngành 3 khi giá trị sản lượng của ngành 3 là 1000 (đơn vị
tiền tệ).
3 Hãy tìm giá trị của m, biết rằng ngành ngành mở phải đóng góp 150 (đơn vị
tiền tệ) cho ngành 2 khi giá trị sản lượng của ngành 2 là 500 (đơn vị tiền tệ).
4 Với m = 0, 2, hãy tìm giá trị sản lượng của ba ngành nếu biết yêu cầu của
ngành mở đối với ba ngành lần lượt là (66, 124, 100).

Le Cong Nhan (Visiting Lecturer at University of Economic Ho Chapter

Chi Minh City)
1. Matrix Algebra 52 / 52