COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 837

"Implementational Issues and Computational Performance
Solving Applied General Equilibrium Models with SLCP"

Thomas F. Rutherford

May 1987

This paper reports on an implementation of Mathiesen’s sequential method for solving applied general equilibrium models. In this approach, the underlying nonlinear complementarity problem is solved by successive linearization. The paper discusses model formulation, implementation and performance. Several test problems and empirical models are used to evaluate efficiency and robustness.

JEL Classification: 213, 021, 214

Keywords: General equilibrium models, algorithm, numerical modeling