Title: The Mathematical Programming Approach to Applied General Equilibrium
Modelling: Notes and Problems

Author: Peter B. Dixon

Abstract

The mathematical programming approach to applied general equilibrium analysis,
although no longer the dominant tool, is still useful, from at least two points of
view:

(1) it neatly integrates into an economy-wide framework the microeconomic theory of
the behaviour of agents constrained by inequalities; and

(2) it provides a useful approach for computing the solutions of some general
equilibrium problems not solvable with the current GEMPACK software (see, e.g., Dixon
(1991), cited below on p. 16).

The material contained in this paper was meant to be included in our graduate-level
text (Peter B. DIXON, B.R. PARMENTER, Alan A. POWELL and P.J. WILCOXEN, Notes and
Problems in Applied General Equilibrium Economics (Amsterdam: North-Holland, 1992), but
space limitations led to our reluctant exclusion of it from the text. Publication in the
Impact series will mean that those who find the approach in our textbook useful will be
able to apply the same method towards mastering mathematical programming in a general
equilibrium context.