CFDP 1426R

The Computation of Counterfactual Equilibria in Homothetic Walrasian Economies

Author(s): 

Publication Date: June 2003

Revision Date: May 2004

Pages: 13

Abstract: 

We propose a nonparametric test for multiple calibration of numerical general equilibrium models, and we present an effective algorithm for computing counterfactual equilibria in homothetic Walrasian economies, where counterfactual equilibria are solutions to the Walrasian inequalities.

Keywords: 

Applied general equilibrium analysis, Walrasian inequalities, Calibration

JEL Classification Codes:  C63, C68, D51, D58