An interior point algorithm for computing equilibria in economies with incomplete asset markets

Computing equilibria in general equilibria models with incomplete asset (GEI) markets is technically difficult. The standard numerical methods for computing these equilibria are based on homotopy methods. Despite recent advances in computational economics, much more can be done to enlarge the catalogue of techniques for computing GEI equilibria. This paper presents an interior-point algorithm that exploits the special structure of GEI markets. We prove that the algorithm converges globally at a quadratic rate, rendering it particularly effective in solving large-scale GEI economies. To illustrate its performance, we solve relevant examples of GEI market

AN INTERIOR POINT ALGORITHM FOR COMPUTING EQUILIBRIA IN ECONOMIES WITH INCOMPLETE ASSET MARKETS

Computing equilibria in general equilibria models with incomplete asset (GEI) markets is technically difficult. The standard numerical methods for computing these equilibria are based on homotopy methods. Despite recent advances in computational economics, much more can be done to enlarge the catalogue of techniques for computing GEI equilibria. This paper presents an interior-point algorithm that exploits the special structure of GEI markets. We prove that the algorithm converges globally at a quadratic rate, rendering it particularly effective in solving large-scale GEI economies. To illustrate its performance, we solve relevant examples of GEI markets.

Taylor-newton homotopy method for computing the depth of flow rate for a channel

Homotopy approximation methods (HAM) can be considered as one of the new methods belong to the general classification of the computational methods which can be used to find the numerical solution of many types of the problems in science and engineering. The general problem relates to the flow and the depth of water in open channels such as rivers and canals is a nonlinear algebraic equation which is known as continuity equation. The solution of this equation is the depth of the water. This paper represents attempt to solve the equation of depth and flow using Newton homotopy based on Taylor series. Numerical example is given to show the effectiveness of the purposed method using MATLAB language

An interior-point algorithm for computing equilibria in economies with incomplete asset markets

Computing equilibria in general equilibria models with incomplete asset (GEI) markets is technically difficult. The standard numerical methods for computing these equilibria are based on homotopy methods. Despite recent advances in computational economics, much more can be done to enlarge the catalog of techniques for computing GEI equilibria. This paper presents an interior-point algorithm that exploits the special structure of GEI markets. It is proved that, under mild conditions, the algorithm converges globally at a quadratic rate, rendering it particularly effective in solving large-scale GEI economies. To illustrate its performance, relevant examples of GEI markets are solvedPublicad