Disjunctive programming and the generalized Leontief input–output model

摘要

This paper considers a generalization of the Leontief input–output model that is useful in modeling the concept of choice of technology. It is shown that a disjunctive programming problem, together with its dual problem, may be used to effectively solve the new input–output model. Various theoretical results are presented together with an illustrative example. Three production sectors, each having two possible choices of technology, are provided in the example and only one linear program is required for finding the solution.