COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 1508

Decision Methods for Solving Systems of Walrasian Inequalities

Donald J. Brown and Ravi Kannan

April 2005

We propose two algorithms for deciding if systems of Walrasian 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 systems of Walrasian inequalities.

Keywords: Applied general equilibrium analysis, Walrasian inequalities, Calibration

JEL Classification: C63, C68, D51, D58