On application of Newton’s Method to solve optimization problems in the consumer theory. Expansion’s Paths and Engel Curves

• Authors: Aleksander Strasburger , Andrzej Zembrzuski
• Languages of publication: EN

Abstracts

EN

The paper continues investigations concerned with numerical modeling of the neoclassical theory of consumption begun in our previous paper [Strasburger et al. (2009)] This time we are interested in expansion’s paths and Engel curves for separable utility functions.. The used numerical procedure is based on Newton’s approximation method, implemented in the MATLAB environment. Based on the prior determination of the approximate solutions of the optimum problem we determine in this paper the expansion paths and Engel curves and compare them with their standard form studied in econometrics.

Keywords

EN

neoclassical theory of consumption; numerical approximations; multidimensional Newton method; expansion path; Engel curve

• Publisher: Katedra Ekonometrii i Statystyki, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
• Journal: Metody Ilościowe w Badaniach Ekonomicznych
• Year: 2011
• Volume: 12
• Issue: 1
• Pages: 135-146

Dates

published

2011

Contributors

author

Aleksander Strasburger

• Department of Applied Mathematics, Warsaw University of Life Sciences – SGGW

author

Andrzej Zembrzuski

• Department of Informatics, Warsaw University of Life Sciences – SGGW

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