General economic equilibrium and variational inequalities: Existence, uniqueness and sensitivity (Q1308660)

The author employs a new theory of variational inequalities to investigate the general economic equilibrium problem with production. The significance of the variational inequality approach is that compared with the traditional, fixed point approach, the computation of the general economic equilibrium is much more satisfactory. The author discusses existence, uniqueness and sensitivity of the equilibrium point. One of the next step would be to collect real data for large scale economies and conduct computational tests on the algorithms proposed in this paper.