Bilevel Optimization Problems of Distribution of Interbudgetary Transfers Under Given Limitations

Abstract

The problems of optimal distribution of transfers within given budget limitations are formulated and analyzed. The mathematical model is presented as a bilevel linear optimization problem that contains linear problems of integer optimization at the lower level. Both optimistic and pessimistic versions of the problem are considered. For the approximate solution of optimistic version, the algorithm of finding local solutions for parametric lower-level integer programming problems on the basis of the method of directing neighborhoods is proposed. The auxiliary integer programming problem with Boolean variables of a higher level is solved based on local algorithms.