A Complementarity Formulation of Spatial Computable
General Equilibrium Models
In this paper we apply a complementarity format to obtain a general form
of
SCGE model and to derive some
characteristics of the model. Mathiesen's
complementarity formulation for computable
general equilibrium (CGE) model is
extended to include interregional trade
flows. With these generalizations,
the paper
may contribute to resolve the limitations
of the recently developed SCGE framework.
Some remarks for the model may be summarized in terms of propositions.