Multipliers and Output/Input Analysis | Assignment

Running head: MULTIPLIERS AND OUTPUT/INPUT ANALYSIS 1
Multipliers and Output/Input Analysis
Student’s Name
Institutional Affiliation

MULTIPLIERS AND OUTPUT/INPUT ANALYSIS 2
Multipliers and Output/Input Analysis
Question c (i)
The following table shows a total of part of all the industries’ inputs and outputs.
Industry Cattle
and
Sheep
Poultry
and
Other
Livestock
Agriculture,
Forestry
and
Fisheries
. . . Other
demands
TOTAL
OUTPUTS
Cattle and
Sheep
2648.05 220.99 8.86 . . . 17987.94 38830.94
Poultry and
Other
Livestock
52.45 130.60 0.00 . . . 11234.54 16389.87
Agriculture,
Forestry
and
Fisheries
3179.72 133.14 194.30
. . .
13267.31 16819.20
.
.
.
.
.
.
.
.
.
.
.
.
. . .
.
.
.
.
.
.
Other
Inputs
18485 14705.05 14644.62 . . .
TOTAL
INPUTS
38830.94 16389.87 16819.20 . . .
Next is the calculation of the technology matrix, which is presented below:
Industry Cattle and Sheep Poultry and
Other
Livestock
Agriculture,
Forestry and
Fisheries
. . . Other
demand
s
TOTAL
OUTPUTS
Cattle and
Sheep
2648.05/38830.94 220.99/16389.87 8.86/16819.20 . . . 17987.94 38830.94
Poultry and
Other
Livestock
52.45/38830.94 130.60/16389.87 0.00/16819.20 . . . 11234.54 16389.87
Agriculture,
Forestry
and
Fisheries
3179.72/38830.94 133.14/16389.87 194.30/16819.20
. . .
13267.31 16819.20
.
.
.
.
.
.
.
.
.
.
.
.
. . .
.
.
.
.
.
.
Other
Inputs
18485/38830.94 14705.05 14644.62 . . .
TOTAL
INPUTS
38830.94/38830.9
4
16389.87 16819.20 . . .
The resulting technology matrix M is as partly shown below.

MULTIPLIERS AND OUTPUT/INPUT ANALYSIS 3
0.068 0.013 0.001 . . .
M = 0.001 0.008 0.000 . . .
0.082 0.008 0.012 . . .
. . .
. . . .
. . .
Following this is the calculation of the Inverse matrix. But first, the matrix M is subtracted
from the corresponding identity matrix.
1 0 0 . .
I-M = 0 1 0 . .
0 0 1 . . - M
. . .
. . .
. . .
The inverse of the resulting I-M matrix is as shown below:
1.00 0.00 0.00 0.06 . .
(I-M) ^-1 = 0.00 1.00 0.000 . . .
0.082 0.008 1.00 . . .
. . .
. . . .
. . .
The type I multipliers for all the 32 industries are listed in the table below. The type I
multipliers are from the column totals of the inverse matrix (I-M).
Industry Type I Multiplier
Cattle and Sheep 1.75
Poultry and Other Livestock 1.15
Agriculture, Forestry and Fishing Support
Services
1.17
Coal mining 2.36
Oil and gas extraction 1.61
Meat and Meat Product Manufacturing 2.47