Novel insights into the multiplier rule

Jan Brinkhuis and Vladimir Protassov

No EI 2005-39, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: 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.

Keywords: bargaining; dynamical systems; economics; finance; multiplier rule; second order condition (search for similar items in EconPapers)
Date: 2005-09-29
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://repub.eur.nl/pub/7026/ei2005-39.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ems:eureir:7026

Access Statistics for this paper

More papers in Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute Contact information at EDIRC.
Bibliographic data for series maintained by RePub ( this e-mail address is bad, please contact ).