Questions tagged [lagrangian]
The lagrangian tag has no usage guidance.
9 questions with no upvoted or accepted answers
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Does local non-satiation hold for this problem?
I am getting some confusing results solving this problem:
$max_{c_0\geq0, c_1\geq0} \bigg\{EU = R(1-c_0) [p t_1 + (1-p) c_1^{-2} t_2] \bigg\} ~ s.t. ~c_0+c_1 \leq 1$
where $p$ is the probability of $...
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2
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Relation between KKT necessary conditions
I am trying to understand the relationships in the KKT theorem between being a maximizer, satisfying the first order conditions (FOCs) and complementary slackness (CSC), and the linearly independent ...
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Solving for the efficient subsidy amount with an externality
I am dealing with a problem that is set up as follows: Actors A and B get utility from consumption ($c_i$) and disutility from safety measures ($s_i$), however their chance of getting sick is reduced ...
- 21
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Missing Solutions in KKT Optimisation Problem
In the attached inequality, constrained, optimisation, problem. Looking at the specific case where $\lambda_1 = 0, \lambda_2 > 0$ that I am trying to solve, you can see that I have managed to find ...
- 1,011
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Linear Dependence of Binding Constraint Qualifications in Karush-Kuhn-Tucker
When checking whether the CQ are satisfied in KKT, i.e. checking for Linear Independence amongst all combinations of the constraints.
Is it true to say we only need to check combinations that could be ...
- 1,011
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Technology Parameter In Converted Minimisation Problem
Question:
I want to understand what's going on with respect to the technology parameter $A$ when i convert this minimisation problem into a maximisation problem. The issue is only revealed when i use ...
- 1,011
1
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Optimal Policy under Commitment
Hi I'm trying to wrap my head around an equation in Jordi Galís book "Monetary Policy, Inflation and the Business Cycle"
Under commitment the Central Bank has the following optimization ...
- 11
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How to derive consumer expenditures in EMEA 14.2.5
I am working on a problem 14.2.5 from EMEA by Sydsaeter, Hammond and Strom.
Consider the consumer demand problem:
$$ \max_{x,y} U(x,y) = \alpha \ln(x-a) + \beta \ln(y-b) \text{ s.t. } px+qy=m \tag{*} ...
- 1,935
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Assumption of interior solution in the Lagrangian method
Why do we need to assume an interior solution before using Lagrangian method for utility maximization problems?
