Solving Over-production and Supply-guarantee Problems in Economic Equilibria

Bing sheng He; Wei Xu; Hai Yang; Xiaoming YUAN

doi:10.1007/s11067-008-9095-2

Solving Over-production and Supply-guarantee Problems in Economic Equilibria

Bing sheng He, Wei Xu, Hai Yang, Xiaoming YUAN^*

^*Corresponding author for this work

Department of Mathematics

Research output: Contribution to journal › Journal article › peer-review

3 Citations (Scopus)

Abstract

The classical Spatial Price Equilibrium of economic markets may result in over-production at supply markets and under-supply at demand markets. This paper considers the policy instruments of levying taxes at supply markets to avoid over-production and granting subsidy for traders to guarantee supply at demand markets. The decision process of determining appropriate rates of tax and subsidy is characterized by an implicit complementarity problem. Consequently, a direct type algorithm is applied to solve the complementarity model. Preliminary numerical results are also reported.

Original language	English
Pages (from-to)	127-138
Number of pages	12
Journal	Networks and Spatial Economics
Volume	11
Issue number	1
DOIs	https://doi.org/10.1007/s11067-008-9095-2
Publication status	Published - Mar 2011

Scopus Subject Areas

Software
Computer Networks and Communications
Artificial Intelligence

User-Defined Keywords

Direct method
Implicit complementarity problem
Over-production
Spatial price equilibrium
Supply-guarantee

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10.1007/s11067-008-9095-2

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title = "Solving Over-production and Supply-guarantee Problems in Economic Equilibria",

abstract = "The classical Spatial Price Equilibrium of economic markets may result in over-production at supply markets and under-supply at demand markets. This paper considers the policy instruments of levying taxes at supply markets to avoid over-production and granting subsidy for traders to guarantee supply at demand markets. The decision process of determining appropriate rates of tax and subsidy is characterized by an implicit complementarity problem. Consequently, a direct type algorithm is applied to solve the complementarity model. Preliminary numerical results are also reported.",

keywords = "Direct method, Implicit complementarity problem, Over-production, Spatial price equilibrium, Supply-guarantee",

author = "He, {Bing sheng} and Wei Xu and Hai Yang and Xiaoming YUAN",

note = "Funding Information: Xiao-Ming Yuan was partially supported by NSFC grants 10701055 and 70732003. Funding Information: Bing-sheng He was supported by NSFC Grant 10571083 and Jiangsu NSF Grant 2008255.",

year = "2011",

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doi = "10.1007/s11067-008-9095-2",

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AU - He, Bing sheng

AU - Xu, Wei

AU - Yang, Hai

AU - YUAN, Xiaoming

N1 - Funding Information: Xiao-Ming Yuan was partially supported by NSFC grants 10701055 and 70732003. Funding Information: Bing-sheng He was supported by NSFC Grant 10571083 and Jiangsu NSF Grant 2008255.

PY - 2011/3

Y1 - 2011/3

N2 - The classical Spatial Price Equilibrium of economic markets may result in over-production at supply markets and under-supply at demand markets. This paper considers the policy instruments of levying taxes at supply markets to avoid over-production and granting subsidy for traders to guarantee supply at demand markets. The decision process of determining appropriate rates of tax and subsidy is characterized by an implicit complementarity problem. Consequently, a direct type algorithm is applied to solve the complementarity model. Preliminary numerical results are also reported.

AB - The classical Spatial Price Equilibrium of economic markets may result in over-production at supply markets and under-supply at demand markets. This paper considers the policy instruments of levying taxes at supply markets to avoid over-production and granting subsidy for traders to guarantee supply at demand markets. The decision process of determining appropriate rates of tax and subsidy is characterized by an implicit complementarity problem. Consequently, a direct type algorithm is applied to solve the complementarity model. Preliminary numerical results are also reported.

KW - Direct method

KW - Implicit complementarity problem

KW - Over-production

KW - Spatial price equilibrium

KW - Supply-guarantee

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AN - SCOPUS:79953058838

SN - 1566-113X

VL - 11

SP - 127

EP - 138

JO - Networks and Spatial Economics

JF - Networks and Spatial Economics

IS - 1

ER -

Solving Over-production and Supply-guarantee Problems in Economic Equilibria

Abstract

Scopus Subject Areas

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