COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 1508R

Two Algorithms for Solving the Walrasian Equilibrium Inequalities

Donald J. Brown and Ravi Kannan

Revised October 2006

We propose two algorithms for deciding if the Walrasian equilibrium inequalities are solvable. These algorithms may serve as nonparametric tests for multiple calibration of applied general equilibrium models or they can be used to compute counterfactual equilibria in applied general equilibrium models defined by the Walrasian equilibrium inequalities.

Keywords: Applied general equilibrium analysis, Walrasian equilibrium inequalities, Calibration

JEL Classification: C63, C68, D51, D58