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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28

say, where A*=pAp1. If we have, for period 1, an intermedlate
 output vector, u say, an intermediate input vector, v say,
and a vector of total outputs, q say, then

(IV. 51)

Ag=u

and

(IV. 52)

GA i=v

We can make an initial estimate, u, say, of » by premultiplying
 q by A*. Thus

(IV. 53)

A*q =
=u,

In general uy#u, but we can force an equality by an appropriate
 multiplication of the rows of A*. Thus
(IV. 54) (un, -A*)g =u

[f we regard the term in brackets as an estimate of A, it can
be seen that it satisfies the row conditions but not the column
conditions. These can be satisfied by a substitution for A from
(IV. 54) into (IV. 52), followed by an appropriate multiplication
 of the columns of A*. Thus

(IV. 55)

A $7 AN 1
gA* wu," li=v,

and

‘IV. 56)

A An 1 , AN I.
g(vvy~'A* uu, i =v

[f we regard the term in brackets as a revised estimate of A,
we can see that it now satisfies the column conditions, but not,
in general, the row conditions. We can, however, repeat the
cycle of operations until we obtain convergence with both the

"1] Stone - pag. 68