Accession Number:

ADA053440

Title:

Convergence Properties of a Pies-Type Algorithm for Non-Integrable Functions.

Descriptive Note:

Technical rept.,

Corporate Author:

STANFORD UNIV CALIF SYSTEMS OPTIMIZATION LAB

Personal Author(s):

Report Date:

1977-12-01

Pagination or Media Count:

21.0

Abstract:

An algorithm for determining the market equilibrium in the presence of non-integrable but differentiable excess demand functions is developed. This can be reviewed as a variant of the Project Independence Evaluation System Algorithm. A sequence of approximate market equilibria are obtained by constructing integrable excess demand functions. Conditions for the existence and uniqueness of the solutions are demonstrated. It is shown further that the sequence converges to the true market equilibrium if a matrix related to the demand elasticities has a spectral radius less than one. There is a close analogy to known methods for iterative solution of nonlinear equations. Geometric interpretations and some effects of coordinate transformation are discussed. Author

Subject Categories:

  • Economics and Cost Analysis
  • Theoretical Mathematics

Distribution Statement:

APPROVED FOR PUBLIC RELEASE