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A Technique for the Solution of Spatial Equilibrium Models


Author Info

  • James G. MacKinnon


This paper describes a new approach to the solution of models of spatial price equilibrium. This approach makes use of a type of algorithm which has been used to compute Kakutani fixed points and non-spatial economic equilibria. The algorithm is very different from most employed in the past. It does not solve the equilibrium problem by maximizing anything, and it is capable of handling demand and supply relationships which are upper semi-continuous correspondences. Two particular types of spatial equilibrium model are considered in detail. These are generalizations of the transportation problem and of Von Thunen's land use model. Solutions to a concrete example of each type of problem are presented.

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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 199.

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Length: 34
Date of creation: 1975
Date of revision:
Publication status: Published in Journal of Regional Science, 16, 1976
Handle: RePEc:qed:wpaper:199

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Cited by:
  1. Batterham, Robert L. & MacAulay, T. Gordon, 1994. "Price-Linked Farm And Spatial Equilibrium Models," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(02), August.
  2. Thomas Rutherford, 1987. "A Modeling System for Applied General Equilibrium Analysis," Cowles Foundation Discussion Papers 836, Cowles Foundation for Research in Economics, Yale University.


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