• 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
Back to top

Abstract

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.
Back to top

Keywords

computation of general equilibria; Gröbner bases; homotopy algorithms; incomplete asset markets; Kuhn–Tucker conditions; multiple equilibria; Newton–Kantarovich conditions; real business cycles; semi-algebraic economies; Smale's alpha method; Tarski–Seidenberg th; uncertainty
Back to top

Article

Back to top

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. 24 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_C000564> doi:10.1057/9780230226203.0284

Download Citation:

as RIS | as text | as CSV | as BibTex