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The Mathematical Programming Approach to Applied General Equilibrium Modelling: Notes and Problems

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  • Peter B. Dixon

Abstract

The mathematical programming approach to applied general equilibrium analysis, although no longer the dominant tool, is still useful, from at least two points of view: (1) it neatly integrates into an economy-wide framework the microeconomic theory of the behaviour of agents constrained by inequalities; and (2) it provides a useful approach for computing the solutions of some general equilibrium problems not solvable with the current GEMPACK software (see, e.g., Dixon (1991), cited below on p. 16). The material contained in this paper was meant to be included in our graduate-level text (Peter B. DIXON, B.R. PARMENTER, Alan A. POWELL and P.J. WILCOXEN, Notes and Problems in Applied General Equilibrium Economics (Amsterdam: North-Holland, 1992), but space limitations led to our reluctant exclusion of it from the text. Publication in the Impact series will mean that those who find the approach in our textbook useful will be able to apply the same method towards mastering mathematical programming in a general equilibrium context.

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Bibliographic Info

Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number i-50.

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Date of creation: Apr 1991
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Handle: RePEc:cop:wpaper:i-50

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  1. Manne, Alan S & Chao, Hung-po & Wilson, Robert, 1980. "Computation of Competitive Equilibria by a Sequence of Linear Programs," Econometrica, Econometric Society, vol. 48(7), pages 1595-1615, November.
  2. Dixon, Peter B & Butlin, Matthew W, 1977. "Notes on the Evans Model of Protection," The Economic Record, The Economic Society of Australia, vol. 53(142&143), pages 337-49, June-Sept.
  3. Evans, H David, 1971. "Effects of Protection in a General Equilibrium Framework," The Review of Economics and Statistics, MIT Press, vol. 53(2), pages 147-56, May.
  4. Dixon, Peter B., 1990. "A general equilibrium approach to public utility pricing: determining prices for a water authority," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 745-767.
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Cited by:
  1. Lofgren, Hans & Robinson, Sheman, 2002. "Spatial-network, general-equilibrium model with a stylized application," Regional Science and Urban Economics, Elsevier, vol. 32(5), pages 651-671, September.

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