Abstract
General equilibrium moels are usually represented as a system of levels equations (e.g., in North America) or a system of linearized equations (e.g., in Australia). Either representation can be used to obtain accurate solutions. General-purpose software is available in both cases-GAMS or MPS/GE is typically used by levels modellers and GEMPACK by linearizers. Some equations (notably accounting identities) are naturally expressed in the levels while others (especially behavioural equations) are naturally expressed in a linearized form. This paper describes the new GEMPACK facility for solving models represented as a mixture of levels and linearized equations and discusses the advantages to modellers of using such a representation.
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Jill Harrison, W., Pearson, K.R., Powell, A.A. et al. Solving applied general equilibrium models represented as a mixture of linearized and levels equations. Comput Econ 7, 203–223 (1994). https://doi.org/10.1007/BF01299780
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DOI: https://doi.org/10.1007/BF01299780