I'm teaching Karesh-Kuhn-Tucker, and looking for papers, ideally in the fields of development, agricultural or environmental economics, and ideally in good journals, that I can use to illustrate the situation where the KKT conditions are satisfied with two contraints (not nonnegativity) are binding. blue circled corner solution

The corner solution circled in blue illustrates what I mean. Would anybody be able to suggest some? Thanks very muich indeed.


1 Answer 1


Only two or three papers spontaneously come to my mind, they are not very recent (but quite seminal papers, useful to find further newest contributions):

Lee, Lung-Fei, and Mark M. Pitt, 1986, "Microeconometric Demand System with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, 54, 1237–1242.
Lee, Lung-Fei and Mark M. Pitt, 1987, "Microeconometric models of rationing, imperfect markets, and non-negativity constraints," Journal of Econometrics, 36, 89-110.

Here is a more recent contribution:
Golan, Amos, et al. “Estimating a Demand System with Nonnegativity Constraints: Mexican Meat Demand,” The Review of Economics and Statistics, vol. 83, no. 3, 2001, pp. 541–550.

  • $\begingroup$ Thank you very much! $\endgroup$
    – Leo Simon
    Dec 25, 2020 at 0:42

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