Difference between revisions of "Factors of Production"
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== Definition == | == Definition == | ||
| − | '''Factors of Production''' | + | '''Factors of Production''' are 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 (<math>r \times k</math>) 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> | ||
| + | \begin{align} | ||
| + | F = | ||
| + | \begin{bmatrix} | ||
| + | f_{1,1} & f_{1,2} & \cdots & f_{1,k} \\ | ||
| + | f_{2,1} & f_{2,2} & \cdots & f_{2,k} \\ | ||
| + | \vdots & \vdots & \ddots & \vdots \\ | ||
| + | f_{r,1} & f_{r,2} & \cdots & f_{r,k} | ||
| + | \end{bmatrix} | ||
| + | \end{align} | ||
| + | </math> | ||
| + | |||
| + | == Further Resources == | ||
| + | * [https://www.openriskacademy.com/course/view.php?id=70 Crash Course on Input-Output Model Mathematics] | ||
| + | * [https://www.openriskacademy.com/course/view.php?id=64 Introduction to Input-Output Models using Python] | ||
== References == | == References == | ||
| Line 6: | Line 27: | ||
[[Category:Biodiversity Risk]] | [[Category:Biodiversity Risk]] | ||
| + | [[Category:EEIO]] | ||
Latest revision as of 18:03, 16 November 2023
Definition
Factors of Production are 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 (
) factor of production matrix F[1][2]:
Further Resources
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
