Comparative Dynamics via Envelope Methods in Variational Calculus

S-Tier
Journal: Review of Economic Studies
Year: 1990
Volume: 57
Issue: 4
Pages: 689-697

Score contribution per author:

8.073 = (α=2.02 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The primal-dual methodology of Samuelson (1965) is extended and applied to a nonautonomous variational calculus problem with a fixed vector of initial stocks, fixed initial and terminal time values, a free vector of terminal stocks, and a time-independent vector of parameters. It is shown that if the solution of the variational problem is smooth enough, the qualitative effects of parameter perturbations on the entire optimal arcs can be represented by a generalized Slutsky-type matrix, which holds in integral form and is symmetric negative semidefinite. Sufficient conditions for the optimal value function to be convex in the parameters are also given.

Technical Details

RePEc Handle
repec:oup:restud:v:57:y:1990:i:4:p:689-697
Journal Field
General
Author Count
1
Added to Database
2026-01-25