The Use of the Matrix Algebra in Solving the Problems of the Inter Sectoral Analysis
by
Margarita Janeska
Prilep, R. Macedonian, Faculty of Economy
Coauthors: Suzana Taleska (Prilep, R. Macedonian, Faculty of Economy)

Each industry's production is necessary as a waste-material in many other infustries or in that industry alone. Considering this fact the "correct" level of each industry's production would depend on the requirements of all industries using that particular production as a waste-material. Considering this intersectoral dependence, the intersectoral analysis comes as an inevitable part of the production, necessary for the planning of it. The formulated problem of the intersectoral analysis comes down to solving a system of simultaneous equations. The matrix algebra takes a great part in the solving of these equations. The degree of linear equations' realistic description of the real economic relationships largely depends on the nature of the relationships we are talking about. Nevertheless, according to the fact that the supposition of linearity is often accepted in the economy, it could, in certain cases, be justified. Using the application of the matrix algebra in solving the problems of the intersectoral analysis, we come to a solution which appears to be important in making important economic decision that help in solving the problems of the courses of social reproduction.

Date received: January 28, 2000