SIMPLE ECONOMIC APPLICATIONS OF MATRICES

Abstract

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.