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Massively parallel computation of large-scale spatial price equilibrium models with discriminatory ad valorem tariffs

  • The Computation of General Equilibria
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Abstract

In this paper, we develop a perfectly competitive spatial equilibrium model in price and quantity variables in the presence of discriminatory ad valorem tariffs, a widely used trade policy instrument. We derive the equilibrium conditions and formulate them as a variational inequality problem. An algorithm is then proposed for the computation of the equilibrium pattern and convergence results established. The algorithm resolves the problem into very simple subproblems, each of which can be solved simultaneously and in closed form. Finally, the algorithm is implemented on the massively parallel Thinking Machines CM-2 and CM-5 architectures, known as the Connection Machines, and numerical results presented.

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Authors and Affiliations

  1. School of Management, University of Massachusetts, 01003, Amherst, MA, USA

    Anna Nagurney

  2. Department of Agricultural, Resource and Managerial Economics, Cornell University, 14853, Ithaca, NY, USA

    Charles F. Nicholson, Phillip M. Bishop & Phillip M. Bishop

Authors
  1. Anna Nagurney
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  2. Charles F. Nicholson
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  3. Phillip M. Bishop
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  4. Phillip M. Bishop
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Nagurney, A., Nicholson, C.F., Bishop, P.M. et al. Massively parallel computation of large-scale spatial price equilibrium models with discriminatory ad valorem tariffs. Ann Oper Res 68, 281–300 (1996). https://doi.org/10.1007/BF02209616

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  • DOI: https://doi.org/10.1007/BF02209616

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