CFDP 1508R

Two Algorithms for Solving the Walrasian Equilibrium Inequalities

Author(s): 

Publication Date: April 2005

Revision Date: October 2006

Pages: 9

Abstract: 

We propose two algorithms for deciding if the Walrasian equilibrium 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 the Walrasian equilibrium inequalities.

Keywords: 

Applied general equilibrium analysis, Walrasian equilibrium inequalities, Calibration

JEL Classification Codes:  C63, C68, D51, D58