• Table of Contents
    • Abstract
    • Keywords
    • Article
      • 1 Introduction
      • 2 Models with asset markets
        • 2.1 A general algorithm
        • 2.2 Short-sale constraints
      • 3 Equilibria in semi-algebraic economies
        • 3.1 Semi-algebraic economies
        • 3.2 Question 1: Smale's alpha method
        • 3.3 Question 2: Polynomial system solving
          • 3.3.1 All solution homotopies
          • 3.3.2 Gröbner basis
    • See Also
    • Bibliography
    • How to cite this article

computation of general equilibria (new developments)

Felix Kubler
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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In this article, I review two recent developments in the theory of computation of general equilibria. First, following Brown, DeMarzo and Eaves (1996) several papers have developed globally convergent algorithms for the computation of general equilibria in models with incomplete asset markets. I review some of the developments in that area. Second, new developments in computational algebraic geometry lead to algorithms to compute effectively all equilibria of systems of polynomial equations. I point out some applications of these algorithms to general equilibrium theory.
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How to cite this article

Kubler, Felix. "computation of general equilibria (new developments)." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 19 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_C000564> doi:10.1057/9780230226203.0284

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