Optimization in Economies with Nonconvexities Suchismita Tarafdar (Job Market Paper)
Abstract Nonconvex optimization is becoming the fashion to solve constrained optimization problems. Classical Lagrangian does not necessarily represent a nonconvex optimization problem. In this paper, we give conditions under which the Classical Lagrangian serves as an exact penalization of a nonconvex programming. This has a simple interpretation and is easy to solve. We use this Classical Lagrangian to provide su¢ cient conditions under which value functions are (i) Clarke di¤erentiable with di¤erential bounds, (ii) directionally di¤erentiable, and (iii) once-continuously di¤erentiable (C 1 ). Relative to the literature, we provide the most general su¢ cient conditions for the existence of directional di¤erentiable and once continuously di¤erentiable envelopes. Our theory has numerous potential examples in lattice programming, nonclassical growth theory and macroeconomics, Negishi methods, nonstationary dynamic lattice programming, and duopoly problems
Department of Economics, WP Carey School of Business, Arizona State University
Abstract. Nonconvex optimization is becoming the fashion to solve constrained optimization problems. Classical Lagrangian does not necessarily represent a ...
Jul 26, 2015 - (2011) for a survey and to the excellent website of the database they ..... solves the (IF) problem, as a build-up for its characterization of the wealth .... 18 A simple definition of a power law, or fat tailed, distribution is as fol
AUniversità di Roma WTor VergataWVia Columbia 2, 00133 Rome, Italy. â Corresponding author. Istituto di Economia e Finanza, Università Cattolica del Sacro.
Apr 18, 2017 - In this note, we prove existence of a Simon and Zame âsolutionâ in ... For example, in exchange economies, consumers are limited by their.
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Nov 30, 2006 - In what follows I will take the sequence of prices as a parameter of ..... agent. Compared to the allocation rule, the domain of the modified allocation rule ..... But it is more appropriate to compare h' and the continuation utility i
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Unpacking the optimal tax rates for distributive and collateral externalities into three sufficient statistics each is also helpful in spelling out explicit conditions ...
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Available online 26 July 2015. Abstract. We study the wealth distribution in Bewley economies with idiosyncratic capital income risk. We show analytically that ...
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Jun 11, 2016 - two-good, two-agent pure exchange economies with heterogeneous but symmetric preferences with ... Darden School of Business, University of Virginia, 100 Darden Blvd, .... 1(1) < 0, we have z1(p) < 0 when p > 1 is sufficiently small. ..
Hour: 17.10. Date: November, 30th (Thursday) 2017. Place: Room: 5C, building C, SGH. Pairwise stable matching in large economies. Michael Greinecker. University of Graz. Abstract: This paper provides a model of stable pairwise matchings in two-sided
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