THE COMPUTATION OF GENERAL EQUILIBRIUM IN ECONOMIES WITH A BLOCK DIAGONAL PATTERN.

In this paper we consider the computation of an equilibrium in a pure exchange economy with a block diagonal pattern. Such a structure appears in, e.g., international trade models. Utilizing the block diagonal pattern, the full equilibrium problem is reformulated as a problem on the product space of several lower-dimensional price-simplices. Some numerical results show the usefulness of this method. [ABSTRACT FROM AUTHOR]