Computing Equilibria in General Equilibrium Models via Interior-point Methods

In this paper we study new computational methods to find equilibria in generalequilibrium models. We first survey the algorithms to compute equilibria thatcan be found in the literature on computational economics and we indicate howthese algorithms can be improved from the computational point of view. We alsoprovide alternative algorithms that are able to compute the equilibria in anefficient manner even for large-scale models, based on interior-point methods.We illustrate the proposed methods with some examples taken from theliterature on general equilibrium models.

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