MATRICES

COURSE MANUAL
Topic 2.5 : Vector and Matrix Notation

Topic 12.1

Jacques (3rd Edition):

Chapter 7.1- 7.2

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A Vector: list of numbers arranged in
a row or column

e.g. consumption of 10 units X and 6

units of Y gives a consumption vector
(X,Y) of (10,6) (6,10)

A Matrix: a two-dimensional array of

numbers arranged in rows and
columns

a11 a12 a13

e.g. A = a 2 X 3 matrix
a21 a22 a23
with 2 rows and 3 columns
component aij in the matrix is in
the ith row and the jth column

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 e.g. let aij be amount good j
consumed by individual i
- columns1-3:represent goods X,
Y& Z
- rows 1-2:represent individuals 1 &
2

Matrix of consumption
c11 c12 c13 0 10 5
C= =
c21 c22 c23 4 0 6
Individual 1 consumes 0 of X, 10 of Y
and 5 of Z
Individual 2 consumes 4 of X, 0 of Y and
6 of Z

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NOTE
Row Vector is a matrix with only 1 row :
A = [5 4 3] 1 X 3 matrix
Column Vector is a matrix with only 1 column :
5

A= 4

3
3 X 1 matrix
Transposing Matrices

a11 a12 a13

A= 2 X 3 matrix
a21 a22 a23

Then
a11 a21

AT = a
12
a 13
a22
a23
3X2 matrix

the transpose of a matrix replaces rows

by columns.

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 0 10 5 0 4

A= then AT
= 10 0

4 0 6
5 6

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Adding and Subtracting Matrices
Matrices must have same number of
rows and columns, m X n

Just add (subtract) the corresponding

elements..
A+B+C=D i.e. aij + bij + cij = dij
9 3 5 2 1 3 15 2
4
1 1 6 3 2 6 5

A - B = E i.e. aij bij = eij

9 3 5 2 4 5
4
1 1 6 5 5

Multiplying Matrices
To multiply A and B,

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No. Columns in A = No. Rows in B

Then A x B= C
(1x 3) (3x 2) = (1x 2)
b11 b12
a11 a12 a13 . b21 b22 c11 c12
b31 b32

c11 = (a11.b11)+ (a12.b21) +(a13.b31)

c12 = (a11.b12)+ (a12.b22) +(a13.b32)
1 2
2 3 4 . 5 3 25 29
2 4

c11 = (2x1) + (3x5) + (4x2) = 25

c12 = (2x2) + (3x3) + (4x4) = 29

3 1 2 1
2 1 0 c c12 c13 c14
1 0 4 . 1 0 1 2 11
5 4 1 c21 c22 c23 c24
1
7 2 5 4

23 17 6 5

c11 = (2x3) + (1x1) + (0x5) = 7

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c12 = (2x1) + (1x0) + (0x4) = 2
c13 = (2x2) + (1x1) + (0x1) = 5
c14 = (2x1) + (1x2) + (0x1) = 4

c21 = (1x3) + (0x1) + (4x5) = 23

c22 = (1x1) + (0x0) + (4x4) = 17
c23 = (1x2) + (0x1) + (4x1) = 6
c24 = (1x1) + (0x2) + (4x1) = 5

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SCALAR MULTIPLICATION
a11 a12
If A =
a21 a22

3 a11 3 a12
Then 3A =
3 a21 3 a22

then 2A =
4 3 8 6
A= 2
1 4
2

And 3A = 12 9
6 3

Practice Transposing, Adding, Subtracting and

Multiplying Matrices using examples from any Text
Book or simply by writing down some simple
matrices yourself.

Determinant of a Matrix

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 a11 a12 a b
If A = a
21

a22 c d

Now we can find the determinant

Multiply elements in any one row or any
one column by corresponding co-factors,
and sum..

Select row 1.
|A| = a11.C11 + a12.C12 = ad bc
Select column 2

|A| = a12.C12 + a22.C22 = b(-c)+da

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MATRIX INVERSION
Square matrix: no. rows = no. columns
Identity Matrix I: AI = A and IA = A
I= (for 2 X 2 matrix)
1 0
0 1

Inverse Matrix A-1: A.A-1= I A-1.A= I

TO INVERT 2 X 2 MATRIX
If A =
a b
c d

d c
1) Get Cofactor Matrix: b
a

b
2) Transpose Cofactor Matrix:
d
c a

b
3) multiply matrix by so
1 1 d
a
|A| ad bc c

(i.e. divide each element by ad bc)

If |A|=0 then there is no inverse(matrix is

singular)

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Example.find the inverse of matrix A
A=
1 2
3 4

|A| = adbc = (1.4)(2.3) = 2(non-singular)

1 2 2 1
A = =
1 4
3
2 3 1 2 12

Check : A.A-1 = I =
1 0
0 1

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Example.find the inverse of matrix B
B=
2 4
5 10

|B| = ad bc = (2.10) (4.5) = 0

therefore, matrix is singular and inverse
does not exist

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Example Expenditure model of national
income

Y= Income
C= Consumption
I = Investment
G= Government expenditure

Y = C+I+G (1)

The consumption function is

C = a + bY (2)

Note C and Y are endogenous. I and G are

exogenous.
How to solve for values of endogenous
variables Y and C?
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Method 1
Solve the above equations directly,
substituting expression for C in eq. (2) into
eq. (1)
Thus, Y = a + bY+I+G
Solve for Y as:
Y bY = a + I + G
Y(1 b) = a + I + G
a I G
Thus, Y
1 b

Substitute this value for Y into eq. (2) and

solve for C:
a I G ( I G )b a
C a b
1 b 1 b

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Method 2
Now solve the same problem using matrix
algebra:
Rewrite (1) and (2) with endogenous
variables, C and Y, on left hand side
From eq. 1: Y - C =I+G
From eq. 2: -bY + C = a
Now write this in matrix notation:
1 1 Y I G
b 1 C a

or A.X =B

We can solve for the endogenous variables

X, by calculating the inverse of the A
matrix and multiplying by B:
Since AX=B X=A-1B

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 To invert the 2 X 2 A matrix, recall the
steps from earlier in the lecture
a b d b
If A = , then A 1 =
1
c d c a
ad bc

In this case, where

1 1
A
b 1

the determinant of A is :
|A| = 1.1 [ 1. b] = 1 b
Cofactor Matrix:
1 b
1 1

Transpose Cofactor Matrix:

1 1
b 1

The inverse is :
1 1
1 1 1
A1 1 b 1 b
1 b b 1
b 1

1 b 1 b

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 so X=A-1B
Y I G
where X
C and B
a

1 1
Y 1 b 1 b I G
X
C b 1 a

1 b 1 b

Thus, multiplying A-1B gives,

I Ga

Y 1 b
C
( I G )b a
1 b

These are the solutions for the endogenous

variables, C and Y, just as we derived using
method 1.
Method 3: Using Cramers Rule
In the example above, where

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 1 1
A
b 1

Y
X
C

I G
B
a

Replace column 1 of A with the elements

of vector B
I G 1
A1

a 1

Calculate the determinant of this as:

|A1| = (I + G )(1) ( 1)( a) = I + G + a

We saw earlier that the determinant of A is

| A | = 1 b

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 Therefore the solution using Cramers
rule is:
| A1 | I G a
Y
|A| 1 b

Replace column 2 of A with the elements

of vector b
1 I G
A2
b a

Calculate the determinant of this as:

|A2|=(1)(a) (I+G)( b) = a+b(I+G)

We saw earlier that the determinant of A is

| A | = 1 b

Therefore the solution using Cramers

rule is:

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 | A2 | a b( I G )
C
|A| 1 b

(just as we derived using the other 2 methods)

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TO INVERT 3 X 3 MATRIX

To find inverse of 3 X 3 matrix, First need to

calculate determinant

a11 a12 a13

A = a21 a22 a23
a31 a32 a33

Corresponding to each aij is a co-factor

Cij. 9 elements in 3X3 9 co-factors.
Co-factor Cij = determinant of 2X2
matrix obtained by deleting row i and
column j of A, prefixed by + or
according to following pattern

22


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e.g. C23 is co-factor associated with a23, in
row 2 and column 3
so delete row 2 and column 3 to give a
2X2 matrix
a11 a12 a13

a21 a22 a23
a31 a32 a33

co-factor C23 is determinant of 2X2

matrix (negative sign in position a23)
C23 = = (a11.a32 a12.a31)
a11 a12
a 31 a 32

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e.g find all co-factors of matrix
2 4 1
4 3 7
A=
2 1 3

C11 = (delete row 1 column 1, compute

determinant of remaining 2X2 matrix, position
a11 associated with +)
2 4 1
4 3 7
and + = +[3.3 (7.1)] = 2
3 7

1 3

2 1 3

C12 = (delete row 1 column 2, compute

determinant of remaining 2X2 matrix, position
a21 associated with -)

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 2 4 1
4 3 7
and = [4.3 (7.2)] = +2
4 7

2 3

2 1 3

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Other co-factors compute as
C13 = + = +[4.1 (3.6)] = -2
4 3
2 1

C21 = = [4.3 (1.1)] = 11

4 1
1 3

C22= + = +[2.3 (1.2)] = 4

2 1
2 3

C23= = [2.1 (4.2)] = 6

2 4
2 1

C31 = + = +[4.7 (1.3)] = 25

4 1
3 7

C32= = [2.7 (1.4)] = -10

2 1
4 7

C33= + = +[2.3 (4.4)] = -10

2 4
4 3

2 2 2

Co-factor Matrix = 11

25
4
10
6
10

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Now we can find the determinant
Multiply elements in any one row or any
one column by corresponding co-factors,
and sum..

Select row 1.
|A| = a11.C11 + a12.C12 + a13.C13
or equivalently select column 2
|A| = a12.C12 + a22.C22 + a32.C32

2 4 1
4 3 7
so the determinant of A=
2 1 3

(choose row 2 for example.)

|A| = a21.C21 + a22.C22 + a23.C23
= (4.-11) + (3.4) + (7.6) = 10

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Now we can find the Inverse
C11 C21 C31
1 C
A = C12 C22 32
-1

A
C13 C23 C33
Step 1 : write matrix of co-factors
C11 C12 C13
2 2 2

C21 C22 C23 =

11 4 6

25 10 10

C31 C32 C33

Step 2 : transpose that matrix (replace

rows by columns), so

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 C11 C21 C31
2 11 25

C12 C22 C32 =

2
4 10
2 6 10

C13 C23 C33

Step 3: multiply each element by
1
A

C11 C21 C31

1 C 2 11 25

A = C12 C22 32 =
-1 1
10
2 4 10

A
2 6 10

C13 C23 C33

1 11
10 5
5 2
-1
So A =

1
5
15
2
5
3
1
1

5

Check : A.A-1 = I

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Practice inverting various 2X2 and 3X3 matrices using
examples from Jacques, or other similar text books.

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