Kuhn-Tucker theorem foundations and its application in mathematical economics

Josheski, Dushko and Gelova, Elena (2013): Kuhn-Tucker theorem foundations and its application in mathematical economics.

Abstract

In this paper the issue of mathematical programming and optimization has being revisited. The theory of optimization deals with the development of models and methods that determine optimal solutions to mathematical problems defined. Mathematical model must be some function of any solution that accompanies a value which is a measure of quality. In mathematics Kuhn-Tucker conditions are first order necessary conditions for a solution in non-linear programming. Under, certain specific circumstances, Kuhn-Tucker conditions are necessary and sufficient conditions as well. In this paper it is also introduced the use of these mathematical methods of optimization in economics.

• Item Type: MPRA Paper
• Language: English
• Keywords: Kuhn-Tucker conditions, nonlinear optimization, mathematical economics
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

References

1. Kuhn H.Tucker(1950). A, Non-Linear Programming, Proceedings of the Second Berkeley Symposium on Mathematical Statistics and Probality, University of California Press, Berkeley, California, 1950

2. Chiang, A., Wainwright, K.,(2005), Fundamental methods of mathematical economics, 4thed.,Mcgraw Hill 3. Wainwright K.,(2007), Econ 400 lecture notes, Simon Fraser University

4. Varian, R.,H.,(1992),Microeconomic analysis, third edition

5. Kimball, W. S., Calculus of Variations by Parallel Displacement.London: Butterworth, p. 292, 1952.

6. E3m-lab,Lecture notes,(2011),Basics for mathematical economics,National technical university of Athens, Institute of communications and computer systems