Solving Large Dimensional CGE Models

‘Solving intertemporal CGE models in parallel using a singly bordered block diagonal ordering technique’, Economic Modelling, 2016, 52, 3-12.

The work introduces a direct ordering method that employs a special feature of an intertemporal Computable General Equilibrium (CGE) model to reorder its first-order partial derivative matrix into a Singly Bordered Block Diagonal (SBBD) form. The matrix can then be decomposed into LU form and solved in parallel. With this method, the numerical results  show a substantial advantage in computational time and memory use for parallel solutions of intertemporal CGE models in comparison to current serial solution methods. A solution for an intertemporal and regional model of the Vietnamese economy is provided as an example and a comparison across different methods.

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