| Abstract: | A non-linear input-output system is constructed on the basis of neoclassical production technologies. Four results are reported: (i) there exists a unique solution to the developed input-output system; (ii) every real square matrix can be the Jacobi matrix of the function relating gross outputs to net outputs; (iii) if the system has a solution at a final demand vector, there is a solution at every final demand vector near it; and (iv) when the final demand for a commodity increases, its price never decreases. The system is founded on a profit function of the economy, which represents a neoclassical production possibility. By this treatment, the system can deal with joint productions, as well as no-joint productions. |
