The Computation of Counterfactual Equilibria in Homothetic Walrasian Economies

Abstract

We propose a nonparametric test for multiple calibration of numerical general equilibrium models, and we present an effective algorithm for computing counterfactual equilibria in homothetic Walrasian economies, where counterfactual equilibria are solutions to the Walrasian inequalities.Applied general equilibrium analysis, Walrasian inequalities, Calibration