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Computing Economic Equilibria by a Homotopy Method

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  • Zoltan Pap
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    Abstract

    In this paper the possibility of computing equilibrium in pure exchange and production economies by a homotopy method is investigated. The performance of the algorithm is tested on examples with known equilibria taken from the literature on general equilibrium models and numerical results are presented. In computing equilibria, economy will be specified by excess demand function.

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    File URL: http://arxiv.org/pdf/1110.5144
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    Paper provided by arXiv.org in its series Papers with number 1110.5144.

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    Date of creation: Oct 2011
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    Handle: RePEc:arx:papers:1110.5144

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    Web page: http://arxiv.org/

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    1. Kehoe, Timothy J., 1991. "Computation and multiplicity of equilibria," Handbook of Mathematical Economics, in: W. Hildenbrand & H. Sonnenschein (ed.), Handbook of Mathematical Economics, edition 1, volume 4, chapter 38, pages 2049-2144 Elsevier.
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