Analyzing company economics using the Leontief open production model

This article details the application of an economic theory to the fiscal operation of a small engineering consulting firm. Nobel Prize-winning economist Wassily Leontief developed his general input-output economic theory in the mid-twentieth century to describe the flow of goods and services in the U.S. economy. We use one mathematical model that resulted from his theory, known as the Leontief Open Production Model, to study the financial structure of a small company and provide a means to streamline the fiscal operation of the firm. The mathematical techniques used by Leontief that are applied to this analysis are typically encountered in an undergraduate course in linear algebra.