A new decomposition method for multiregional economic equilibrium models
成果类型：
Article
署名作者：
Chung, William; Fuller, J. D.; Wu, Y. June
署名单位：
City University of Hong Kong; University of Waterloo; Toronto Metropolitan University
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.1060.0274
发表日期：
2006
页码：
643-655
关键词：
摘要：
This paper discusses decomposition of a multiregional economic equilibrium model that is characterized by a cost minimizing, linear programming (LP) model of the supply side and a vector-valued function that gives demand prices as functions of the quantities demanded. Our motivation is to ease model development and maintenance by a solution method that links separately developed regional models only when a consistent multiregion solution is desired. A heuristic strategy is described to extend any existing (LP) decomposition principle to a procedure for decomposing an equilibrium model by region. This strategy is applied to extend Dantzig-Wolfe decomposition to the multiregional economic equilibrium model, and several theoretical results are derived for the resulting algorithm. The central result is a proof of asymptotic convergence. under usefully general conditions. The extended Dantzig-Wolfe procedure is illustrated with an existing, two-region model of Canadian energy supplies and demands.