The Singular Value Decomposition of a Technology Matrix

  title={The Singular Value Decomposition of a Technology Matrix},
  author={E. Fisher},
  journal={International Trade eJournal},
  • E. Fisher
  • Published 2014
  • Mathematics
  • International Trade eJournal
  • This paper is the first application of the singular value decomposition in general equilibrium theory. Every technology matrix can be decomposed into three parts: (1) a definition of composite commodities; (2) a definition of composite factors; and (3) a simple map of composite factor prices into composite goods prices. This technique gives an orthogonal decomposition of the price space into two complementary subspaces: (1) vectors that generate the price cone; and (2) a basis that describe the… CONTINUE READING
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