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4 questions
4
votes
1
answer
62
views
What assumptions can be made to ensure convexity in this optimization problem?
This question is a continuation of the question I asked at:
How can I show convexity of this value function?
Where I came to the conclusion that more assumptions are required to show that the ...
- 183
4
votes
1
answer
389
views
How can I show convexity of this value function?
I have set up an optmization problem as follows:
$$V(A)=\max_{l, C} \quad u(C,l)$$
Where the only constraint is as follows:
$$C=f(l,A)$$
Here $u$ is the utility function which captures social welfare. ...
- 183
3
votes
2
answers
210
views
How can I formulate the following optimization problem?
I want to set up an optmiization problem for global warming in which a planner determines how much carbon dioxide gas is emitted. Let's say we reduce this problem down to two periods, then I ...
user40867
1
vote
0
answers
375
views
Natural borrowing/debt limit and other borrowing constraints
When confronted with the simple household consumption maximization problem under uncertainty (and with Arrow security sequential trading)
$$\max_{\{c_t(s^t),a_{t+1}(s^t,s_{t+1})\}_{t=0}^{\infty}}\...
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