Download A Short History of Socialist Economic Thought by Gerd Hardack, Dieter Karras, Ben Fine PDF

By Gerd Hardack, Dieter Karras, Ben Fine

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Extra resources for A Short History of Socialist Economic Thought

Example text

This method is known as the 'double deflation' method. Let represent the value of cell ij in the national transactions matrix for Vj the value added by industry j, and Pi the 1970 price index (1963 base) for industry i. A prime denotes value expressed in 1970 prices, while a 'dot' subscript indicates summation over the replaced subscript. J.. These calculations yield a price-adjusted national transactions table. From this table, production coefficients can be calculated which hold physical production requirements constant.

Here, / is the identity matrix, which is the matrix equivalent to the number 1, and the exponent (-1) shows that the parenthetic expression is inverted, or divided into another identity matrix. 5b Total requirements per dollar of delivery to final demand, Georgia, 1970. r ... 5 Services

This substantially reduces the burden forced upon the nonsurvey technique, that of estimating regional trade for the remainder of the state's industries. ' It is commonly designated as the 'A' matrix. Each Ai; indicates the proportion of the total inputs of industry j purchased from industry i: Note that this Ai; is to be distinguished from the ai; of Chapter 2. The table says nothing about the regional origins of inputs; it only identifies the production technologies of industries in the state.

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