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Two-Stage Approach for Quantitative Policy Analysis Using Bilevel Programming

Author

Listed:
  • A. Breiner

    (Breiner Consulting)

  • M. Avriel

    (Technion-Israel Institute of Technology)

Abstract

Quantitative policy analysis problems with hierarchical decision-making can be modeled as bilevel mathematical programming problems. In general, the solution of these models is very difficult; however, special cases exist in which an optimal solution can be obtained by ordinary mathematical programming techniques. In this paper, a two-stage approach for the formulation, construction, solution, and usage of bilevel policy problem is presented. An outline of an example for analyzing Israel's public expenditure policy is also given.

Suggested Citation

  • A. Breiner & M. Avriel, 1999. "Two-Stage Approach for Quantitative Policy Analysis Using Bilevel Programming," Journal of Optimization Theory and Applications, Springer, vol. 100(1), pages 15-27, January.
    • Handle: RePEc:spr:joptap:v:100:y:1999:i:1:d:10.1023_a:1021760713627
    DOI: 10.1023/A:1021760713627
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    References listed on IDEAS

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    1. Wilfred Candler & Jose Fortuny-Amat & Bruce McCarl, 1981. "The Potential Role of Multilevel Programming in Agricultural Economics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(3), pages 521-531.
    2. Avriel, Mordecai & Breiner, Avishai, 1985. "A technoeconomic model for sectoral and economy-wide development planning," Socio-Economic Planning Sciences, Elsevier, vol. 19(5), pages 321-330.
    3. Breiner, Avishai & Avriel, Mordecai, 1994. "On the solution of quantitative policy analysis models using bi-level programming," Socio-Economic Planning Sciences, Elsevier, vol. 28(3), pages 179-195.
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