
The current non-linear programming method does not derive regional economic surpluses and may derive an imprecise maximized value of the total economic surplus. The main reason is that the integrals for supply functions will automatically take regional non-economic producer surpluses into account if any intercepts of supply functions is negative. Consequently, the derived values are always lower than the real regional and total economic surpluses. The unknown regional economic surpluses and the imprecise total economic surplus will limit the suitable application of the model for broader contexts including game theory analysis, international trade policy analysis, and even GDP calculation. This paper recommends two formulae applied for two types of functions, namely original and inverse supply and demand functions, to calculate the regional and total economic surpluses of commodities. The two methods can be converted to each other conveniently, for example by using an inverse matrix of coefficients of original supply and demand functions to solve coefficients of inverse supply and demand functions. A numerical example is used to illustrate the spatial equilibrium model for 2 products and 3 regions with original linear supply and demand functions.
339, FoR 1402 (Applied Economics), negative intercepts, producer surplus, consumer surplus, integrals of supply and demand
339, FoR 1402 (Applied Economics), negative intercepts, producer surplus, consumer surplus, integrals of supply and demand
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 0 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Average | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Average | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
