A HYBRID ALGORITHM FOR THE SOLUTION OF A SINGLE COMMODITY SPATIAL EQUILIBRIUM-MODEL

In this paper we propose a hybrid algorithm for the solution of a larg e-scale single commodity spatial equilibrium model. This model can be stated as a Linear Complementarity Problem (LCP) with a singular Symme tric Positive Semi-Definite (SPSD) matrix whose structure is closely r elated to the network structure of the model. The hybrid scheme is a c ombination of Predictor-Corrector (PC) and Parametric Principal Pivoti ng (PPP) algorithms and its implementation takes full advantage of the structure of the matrix of the LCP. We report computational experienc e on the solution of large-scale spatial equilibrium problems with up to 1000 regions that shows the great efficiency of the approach discus sed in this paper. Copyright (C) 1996 Elsevier Science Ltd