An Armington-Leontief Model

We develop a novel linear equilibrium model with an Armington flavor. We show (1) that the standard multiplier matrix arises as a special case of this new model and (2) that this model allows the computation of multiplier effects with no external output bias, which is particularly relevant for applied analysis. We also provide (3) a mathematical proof of the solvability of the model and the non-negativity of the newly derived multiplier matrix that results from the model's equilibrium solutio