Abstracts: In this paper, we investigate the generalized eigenvalue problem $A{\bf x}=\lambda B {\bf x}$ arising from economic models.
Under certain conditions, there is a simple generalized eigenvalue $\rho(A, B)$ in the interval $(0, 1)$ with a positive eigenvector. Based on the Noda iteration, a modified Noda iteration (MNI) and a generalized Noda iteration (GNI) are proposed for finding the generalized eigenvalue $\rho(A, B)$ and the associated unit positive eigenvector. It is proved that the GNI method always converges and has a quadratic asymptotic convergence rate. So GNI has a similar convergence behavior as MNI. The efficiency of these algorithms is illustrated by numerical examples.