Mathematics · Linear Programming
In Leontief's Input-Output model, the viability condition (Hawkins-Simon condition) requires that:
- 1The production function must be homogeneous of degree 1.
- 2All inputs must equal total outputs.
- 3The spectral radius of the input coefficient matrix A must be less than 1.✓
- 4The determinant of (I - A) must be zero.
Correct answer
The spectral radius of the input coefficient matrix A must be less than 1.
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