Solving Leontief input-output model with fuzzy entries

  • Authors:

  • Jorma K. Mattila;Pasi Luukka

  • Affiliations:

  • Laboratory of Applied Mathematics, Lappeenranta University of Technology, Lappeenranta, Finland;Laboratory of Applied Mathematics, Lappeenranta University of Technology, Lappeenranta, Finland

  • Venue:
  • FUZZ-IEEE'09 Proceedings of the 18th international conference on Fuzzy Systems
  • Year:
  • 2009

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Abstract

A general fuzzy linear system is investigated using fuzzy numbers and Gauss-Seidel iteration formula. We have used our fuzzy linear system to solve Leontief input-output model with fuzzy entries. When solving Leontief input-output model we are usually making the assumption that we know entirely the consumption matrix from industrial entries and we are certain about the final demand. These assumptions however depend heavily on estimates and information received from the industry and hence in these estimates, uncertainty plays a crucial role. To address this type of uncertainty fuzzy methods are needed to model this and in this article we are giving a procedure to solve this problem. Numerical example is given to illustrate the procedure.