Mathematical theory for a multilateral trade clearing agency

✍ Scribed by Håvard Alstadheim

• Book ID: 104739294
• Publisher: Springer US
• Year: 1967
• Tongue: English
• Weight: 541 KB
• Volume: 7
• Category: Article
• ISSN: 1573-9414
• DOI: 10.1007/bf00361331

✦ Synopsis

In connection with the article by Professor Ragnar Frisch in this issue of Economics of Planning, we will here present a mathematical formulation of multilateral clearing. The formulation is to a large extent built upon a presentation given by Professor Frisch in Norwegian. 1 But we will also utilize experiences gained from experimentation with some numerical examples. "2

The model given here is simplified in two respects in comparison with Frisch's article. In the first place we consider single period balancing only. This means that we disregard the seventh principle in the above article. In the second place we do not take into consideration priorities with respect to trading partners. We will, however, make it clear how the model can be generalized to take care of multiple period balancing.

In the following two concepts will be central. First we have the type of good. It will be denoted by the affix v to variables. Next we have the concept country denoted by the affix M to variables.