A hybrid algorithm for the solution of a single commodity
spatial equilibrium model
L. Portugal and J. Judice
In this paper we propose a hybrid algorithm for the solution of a
large-scale single commodity spatial equilibrium model. This model can
be stated as a Linear Complementarity Problem (LCP) with a singular
Symmetric Positive Semi-Definite (SPSD) matrix whose structure is
closely related with the network structure of the model. The hybrid
scheme is a combination of a Predictor-Corrector (PC) and a Parametric
Principal Pivoting (PPP) algorithms and its implementation takes
full advantage of the structure of the matrix of the LCP. We report
computational experience on the solution of large-scale spatial
equilibrium problems with up to 1000 regions that shows the great
efficiency of the approach discussed in this paper.