CFDP 1508

Decision Methods for Solving Systems of Walrasian Inequalities

Publication Date: April 2005

Pages: 9

Abstract: 

We propose two algorithms for deciding if systems of Walrasian inequalities are solvable. These algorithms may serve as nonparametric tests for multiple calibration of applied general equilibrium models or they can be used to compute counterfactual equilibria in applied general equilibrium models defined by systems of Walrasian inequalities.

Keywords: 

Applied general equilibrium analysis, Walrasian inequalities, Calibration

JEL Classification Codes:  C63, C68, D51, D58