To make CGE models realistic, inequality constraints (e.g., import quotas) or non-differentiable functions (e.g., income tax schedules) are sometimes needed. Both situations may be described using complementarity conditions, which state that either an equation is true or its complementary...

To make CGE models realistic, we sometimes need to include inequality constraints (eg, import quotas) or non-differentiable functions (eg, income tax schedules). Both situations may be described using complementarity conditions, which state that either an equation is true or its complementary...