Difference between revisions of "Factors of Production"
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== Formula == | == Formula == | ||
− | The row vectors of | + | The r row vectors of factors for k regions can be summarised in an (r x k) factor of production matrix F<ref>Stadler K 2021 Pymrio - A Python Based Multi-Regional Input-Output Analysis Toolbox. Journal of Open Research Software, 9: 8</ref><ref>Not to be confused with the [[Final Demand]] vector f</ref>: |
:<math> | :<math> |
Revision as of 19:38, 2 March 2022
Definition
Factors of Production. The inputs needed for the creation of a final good or service (output). In the context of an Input-Output Model, factors of production extend the inter-industry transactions matrix with additional rows of inputs into the economic system. These inputs might alternatively be termed Value Added (such as labour or capital) or the Payments Sector, indicating that it the additional monetary data needed to balance total inputs with total output in an open input-output model.
Formula
The r row vectors of factors for k regions can be summarised in an (r x k) factor of production matrix F[1][2]:
References
- ↑ Stadler K 2021 Pymrio - A Python Based Multi-Regional Input-Output Analysis Toolbox. Journal of Open Research Software, 9: 8
- ↑ Not to be confused with the Final Demand vector f