How Feasible are Jack Ma's Proposals for Computerized Planning?
<p class="first" id="d351537e75">The use of linear optimization for the construction of economic plans was first introduced by Kantorovich with an algorithm similar to those later developed in the West by Danzig. In recent years linear optimization p...
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| Format: | Article |
| Language: | English |
| Published: |
Pluto Journals
2019-09-01
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| Series: | World Review of Political Economy |
| Online Access: | https://www.scienceopen.com/hosted-document?doi=10.13169/worlrevipoliecon.10.3.0302 |
| Summary: | <p class="first" id="d351537e75">The use of linear optimization for the construction of economic plans was first introduced
by Kantorovich with an algorithm similar to those later developed in the West by Danzig.
In recent years linear optimization packages have become readily available on desktop
computers, an example being the lp-solve system. In this paper I first show how the
lp-solve package can be used to construct macro-economic plans starting from information
in IO table. I then examine the empirical computational complexity of the package
in dealing with this sort of problem. This will show that the complexity is too great
to allow the package to be applied to highly disaggregated IO tables. As an alternative
to lp-solve I explain the Harmony algorithm and how that can be extended to the problem
of multi-year plans. Performance measurements are given which indicated that the Harmony
algorithm has a markedly lower computational complexity than lp-solve, making it more
suitable for highly disaggregated plans.
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| ISSN: | 2042-891X 2042-8928 |