2005-09-29
Novel insights into the multiplier rule
Publication
Publication
Report / Econometric Institute, Erasmus University Rotterdam
We present the Lagrange multiplier rule, one of the basic optimization methods, in a new way. Novel features include: • Explanation of the true source of the power of the rule: reversal of tasks, but not the use of multipliers. • A natural proof based on a simple picture, but not the usual technical derivation from the implicit function theorem. • A practical method to avoid the cumbersome second order conditions. • Applications from various areas of mathematics, physics, economics. • Some hnts on the use of the rule.
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hdl.handle.net/1765/7026 | |
Econometric Institute Research Papers | |
Report / Econometric Institute, Erasmus University Rotterdam | |
Organisation | Erasmus School of Economics |
Brinkhuis, J, & Protassov, V. (2005). Novel insights into the multiplier rule (No. EI 2005-39). Report / Econometric Institute, Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/7026
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