Acta academica karviniensia 2013, 13(3):190-199 | DOI: 10.25142/aak.2013.055

SIMPLE ECONOMIC APPLICATIONS OF MATRICES

Eva Ulrychová

Vysoká škola finanční a správní, Fakulta ekonomických studií, Estonská 500, 101 00 Praha 10, Email:ulrychova@mail.vsfs.cz

This article deals with simple examples pointing out to the use of mathematical models, especially of linear algebra tools (matrix operations, eigenvectors, Markov chains, systems of linear equations, least squares approximation), in economic applications. In some cases, solved problems and data given in examples may have been simplified compared to real values as the main aim is to show possibilities of applications rather than to obtain accurate results. The presented examples can help to introduce students of economics-oriented universities into the matrix theory and illustrate the connection between theory and practice.

Keywords: application, eigenvalues, matrix, matrix operations, system of linear equations

JEL classification: A12, A22

Received: November 20, 2012; Accepted: June 19, 2013; Published: September 30, 2013  Show citation