# Tag Info

### Question for general equilibrium

To find efficient allocations in this economy, we can first determine the production possibility frontier (PPF) which is given by the line segment $\dfrac{x}{2}+y=100$ where $x\in[0,200]$. Pareto ...
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### Weird Leontief production function

This is not a weird case, but a Leontief production function which is not homogeneous of degree one, but homogeneous of degree $b$. You can see this if you use the connection between a C.E.S. ...
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Accepted

• 8,591
Accepted

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1 vote

### Marshallian demand with Leontif preferences

So, I have not really worked out the maths behind solving this. I prefer to take a shortcut and just compute it numerically. Here is what I have. These are the contour surfaces and the budget ...
• 721
1 vote
Accepted

The Lagrangian method wouldn't be of any use, because Leontief function is not differentiable at the point of optimality/kink. However, you can consider the following approach. We know that for $U(x,... • 525 1 vote ### Leontief input output model with column sum greater than 1 You are right when saying that mathematically in the cited theorem the condition of column sums being less than 1 is not an "if and only if" condition and thus exceptional circumstances are ... 1 vote Accepted ### Leontief input output model with column sum greater than 1 In terms of if and only if statements according to Peterson & Olinick (1982); A substochastic matrix A is productive if and only if$I-A\$ is nonsingular. In substochastic matrix the sum of ...
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