Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: May, 1985, Volume 53, Issue 3

The Computation of General Equilibrium in Economies with a Block Diagonal Pattern<659:TCOGEI>2.0.CO;2-B
p. 659-666

Gerard van der Laan

In this paper we consider the computation of an equilibrium in a pure exchange economy with a block diagonal pattern. Such a structure appears in, e.g., international trade models. Utilizing the block diagonal pattern, the full equilibrium problem is reformulated as a problem on the product space of several lower-dimensional price-simplices. Some numerical results show the usefulness of this method.

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