Abstract

A result from Varga (1962) is used to derive bounds for the spectral radius of a non-negative matrix. This is then applied to a Leontief input-output system. The bounds for the spectral radius are derived using an iterative method, which is closely related to the Power method for finding the dominant eigenvalue of a matrix, a variation of the method is presented and this new method has superior features. Special attention is paid to the step-by-step improvement of the bounds and the subsequent convergence of the method.

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