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Lec 2 INVERSE OF MATRIXs
Lec 2 INVERSE OF MATRIXs
Lec 2 INVERSE OF MATRIXs
Sections 5.1, 5.3 from Fundamental methods of Mathematical Economics, McGraw Hill
2005, 4th Edition. By A. C. Chiang & Kevin Wainwright are covered.
+ + + =
+ + + =
+ + + =
Where x1,x2,...xn are unknowns and a’s and d’s denote constants, is known as non-
homogeneous system provided ’ 𝑙𝑙 (at least one of them is non-zero).
…
…
𝐴=[ ], =[ ], =[ ]
…
The double subscripted parameter symbol represents the coefficients appearing in the ith
equation and attached to the jth variable. For example, is the coefficient appearing in the
second equation, attached to the variable . The parameter which is unattached to any
variable, on the other hand, represents the constant term in the ith equation. For instance,
is the constant term in the first equation. All subscripts are therefore keyed to the specific
locations of the variables and parameters.
=𝐶+𝐼 +𝐺 ,
Where Y and C stand for the endogenous (dependent) variables national income and
(planned) consumption expenditure, respectively, and 𝐼 and 𝐺 represent the exogenously
(independent) determined investment and government expenditures.
=𝐶+𝐼 +𝐺 ,
where Y , C and T are endogenous variables, and 𝐼 and 𝐺 represent the exogenous
variables.
= 𝐶 + 𝐼 + 𝐺,
where Y , C and G are endogenous variables, and 𝐼 , and 𝑇 represent the exogenous
variables.
Two vectors 𝑣 and 𝑣 are linearly dependent if one vector is multiple of other; otherwise they are
linearly independent. For example
𝑣′
𝑣′
𝐴=[ ]=[ ]
𝑣′
Where
𝑣′ = [ ]
𝑣′ = [ ]
𝑣′ = [ ].
Example 3: Check row vectors are linearly independent or not for following 3×3 matrix
𝑣′
𝐴=[ ] = [𝑣′ ]
𝑣′
|𝐴| = ≠
A square matrix A is said to be non-singular if and only if its determinant value is non-zero. A
square matrix A is said to be singular if and only if |A| = 0.
Rank of a square matrix: For a n×n if |𝐴| ≠ then rank of A is equal to n otherwise rank is
less than n.
𝐴=[ ]
|𝐴| = ≠
=𝐶+𝐼 +𝐺 ,
where Y and C stand for endogenous variables are national income and consumption expenditure,
respectively, and 𝐼 and 𝐺 represent the exogenously determined investment and government
expenditure.
(a) Rewrite national-income model in the AX=d (with Y as the first variable in vector X).
(b) Are the rows linearly independent in the coefficient matrix A. Hence determine it singular or
nonsingular?
(c) Test whether the coefficient matrix A is non-singular using determinant criterion.
Solution: (a) System can be rewritten as
−𝐶 = 𝐼 +𝐺
− +𝐶 =
− 𝐼 +𝐺
[ ][ ] = [ ]
− 𝐶
where
− 𝐼 +𝐺
𝐴=[ ], = [ ], =[ ]
− 𝐶
=𝐶+𝐼 +𝐺 ,
where Y , C and T are endogenous variables, and 𝐼 and 𝐺 represent the exogenous variables.
(a) Rewrite national-income model in the AX=d (with Y as the first variable in vector X).
(b) Test whether the coefficient matrix A is non-singular.
Solution: (a) System can be rewritten as
−𝐶 = 𝐼 +𝐺 ,
− +𝐶+ 𝑇 =
− +𝑇 =
− 𝐼 +𝐺
[− ] [𝐶 ] = [ ]
− 𝑇
where
− 𝐼 +𝐺
𝐴 = [− ], = [𝐶 ] , =[ ]
− 𝑇
−
(b) |𝐴| = |− |
−
|𝐴| = | −
|− − | |+ = − +
−
|𝐴| = − + ≠ . Hence A is non-singular matrix.
Question: Test whether the following matrix is nonsingular. What can you say about its rank?
−
(ii) C = [− ]
Inverse of a matrix:
The inverse of a square matrix A, denoted by A-1, is the matrix so that the product of A and A-1 is the Identity
matrix.
− −
= =𝐼
A square matrix which has an inverse is called invertible, and a square matrix without an inverse is called
noninvertible.
𝑎 𝑎
If A=[𝑎 𝑎 ] then
−
𝑎 −𝑎
= [ 𝑎 ]
| | −𝑎
𝑎 −𝑎
= [−𝑎 𝑎 ]
𝑎 𝑎 −𝑎 𝑎
Adjoint of a matrix: If A is any n×n matrix and Cij is the cofactor of aij, then the matrix
𝑛
𝑛
[ ]
𝑛 𝑛 𝑛𝑛
is called the matrix of cofactors from A. The transpose of this matrix is called the adjoint of A and is denoted by
adj(A).
Example 1: Let
| | −| | | |
−| | | | −| |
[ | | −| | | |]
− −
[ − ]
−
−
𝑎𝑑𝑗 =[− − ]
−
−
= 𝑎𝑑𝑗
det
−
Example 2: Find for matrix A in Example 1.
det(A)=(-13)(1)+(3)(-2)+(18)(2)=17
−
𝑎𝑑𝑗 =[− − ]
−
−
−
= [− − ]
−
− / / /
=[− / − / / ]
/ / − /
− −
= =𝐼
Example 3: Let
−
=[ − ]
− −
−
then find .
− −
| | −| | | |
− − − −
− −
−| | | | −| |
− − − −
− −
[ | −
| −|
−
| | |]
− −
[− − − ]
− −
𝑎𝑑𝑗 =[ − ]
− −
− −
−
=− [ − ]
− −
Example 4: Let
−
=[ ]
−
−
then find .
−
[ ]
−
And
𝑎𝑑𝑗 =[ − ]
−
det(A)=(3)(12)+(2)(6)+(-1)(-16)=64
−
= [ − ]
−
Notes:
− − −
=
The Inverse of an invertible lower triangular matrix is lower triangular and the inverse
of an invertible upper triangular matrix is upper triangular.
Example 5: Let
=[ ]
−
then find .
[− ]
− −
so the adjoint is
− −
[ − ]
− −
−
= [ − ]
− / − /
=[ / − / ]
/
−
Notice that the successive diagonal entries of are
, ,
𝑎 𝑎 𝑎
, , ,…,
𝑎 𝑎 𝑎 𝑎𝑛𝑛
−
Example 6: Find where
=[ ]
Solution: det(A)=(1)(3)(2)(1)=6
[ ]
and
𝑎𝑑𝑗 =[ ]
−
= [ ]
/
=[ ]
/
−
the successive diagonal entries of are
, , ,
𝑎 𝑎 𝑎 𝑎
−
(i) =[ ]; =[ ]
(ii) =[ ]; =[ ]
Solution:
−
(i) =[ ][ ]=[ ]=𝐼