Consider a small open economy that is described by the following system: s, Y, = 0....

 

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Consider a small open economy that is described by the following system: Σs, Y, = 0. where Q = endowment of good i; i = {A, B, C) Y, = output of good j; j = {1, 2, 3) Sy =ratio of the use of endowment i as input in the production of good j to the total endowment of input i 0<s, <1 and Σs, =1 endogenous variable: Y, Expand and set up the equation system in matrix format. Consider a small open economy that is described by the following system: Σs, Y, = 0. where Q = endowment of good i; i = {A, B, C) Y, = output of good j; j = {1, 2, 3) Sy =ratio of the use of endowment i as input in the production of good j to the total endowment of input i 0<s, <1 and Σs, =1 endogenous variable: Y, Expand and set up the equation system in matrix format.

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