Abstract

Matrices have numerous applications across engineering and related disciplines. This article focuses on their application in Leontief’s input–output model, which is widely used in economics to analyze interdependencies among different sectors of an economy. By employing matrix properties and operations, the model provides a systematic method for evaluating how changes in market conditions affect prices, demand, and supply. Specifically, the article examines the application of matrices in both the closed and open input–output models developed by Wassily Leontief, clarifying their mathematical structures and economic significance.

Keywords: Closed model, Leontief input–output model, open model.