Mathematics · Input-Output Analysis
If the technology coefficient matrix of a two-sector economy is A = [ 0.8 0.2 ][ 0.9 0.7 ], is this system viable according to the Hawkins-Simon conditions?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Yes, because a11 and a22 are both less than 1
- 2No, because |I − A| < 0✓
- 3No, because |I − A| = 0
- 4Yes, because |I − A| > 0
Correct answer
No, because |I − A| < 0
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