A fixed point algorithm with economic applications

DOI10.1016/0165-1889(85)90001-6MaRDI QIDQ1115331zbMATH OpenOpenAlexFDO

Authors Arvind Khilnani, Edison Tse

Publication date 1985

Published in Journal of Economic Dynamics and Control (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/0165-1889(85)90001-6

zbMATH Keywords

computation of economic equilibriaconvergence errorfixed point algorithmlarge scale economic problemssuccessive approximation

Mathematics Subject Classification ID

Numerical computation of solutions to systems of equations (65H10) Applications of mathematical programming (90C90) General equilibrium theory (91B50)

Review text

A new fixed point algorithm applicable to large scale economic problems is developed. Motivated by successive approximation the algorithm iterates on a convex combination of the traditional price-to-price map and the identity map. The actual combination used is determined from the convergence error of the previous iteration. The specified convex combination is guaranteed to be a contraction if the original map is Lipschitz-continuous and antitonal. These sufficient conditions are shown to be weaker than the contraction requirement. A simple supply-demand example is presented to show the advantages to this algorithm over successive approximation.

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Cites work

• A fixed point algorithm with economic applications
• Conjugate gradient versus contraction mapping
• FUNDAMENTAL MARXIAN THEOREM IN CASE OF MULTIPLE ACTIVITIES
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Cited in

(13)

• Parametric fixed point algorithms with applications to economic policy analysis
• A note on Khilnani and Tse's USA algorithm
• A fixed point algorithm with economic applications
• On the extrapolation method and the USA algorithm
• A note on the radius of convergence of the USA algorithm
• An integrated system model for a fishery management process. I: Model structure
• Nonstationary model solution techniques and the USA algorithm
• Stochastic mean values, rational expectations, and price movements
• Comparative statics in the large based on a fixed point algorithm
• Solving nonlinear equations by adaptive homotopy continuation
• Nonlocal automated sensitivity analysis
• scientific article; zbMATH DE number 3876870 (Why is no real title available?)
• scientific article; zbMATH DE number 62440 (Why is no real title available?)

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