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The Application of Fixed Point Methods to Economics

Authors: John B. Shoven;

The Application of Fixed Point Methods to Economics

Abstract

The purpose of this paper is to briefly review the applications of fixed point and path following methods to problems in economics, and to present one such application in some detail. The problem for which economists have adopted these methods is the computation of a set of goods prices which represent an economy’s equilibrium. By equilibrium prices, we mean that total market demands match total market supplies for every good, when both consumers and producers maximize their objective functions subject to these prices. Methods of the type described in the other papers in this conference volume are proving to be extremely useful for solving this difficult economic problem. Perhaps economists have accepted these techniques more rapidly than others because of the pathbreaking work in the computation of fixed points by an economist, Herbert Scarf. Scarf’s original articles [1967a, 1967b] and landmark book [1973] deal with the computation of economic equilibria.

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citations
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).
BIP!Citations provided by BIP!
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.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
6
Average
Top 10%
Average
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