NEKG33 Mathematical methods for economists
Chapter 10 : Day 10: Lagrange
By Lund University
Final day of the first part of the course. We will look at the most "advanced" topic of the course, constrained optimization and the method of Lagrange.
In the final theory section of the first part of the course we look at constrained optimization. Specifically, we will introduce something called the Lagrangian and the Lagrange multiplier and we will study the method of Lagrange. This method will help us to find the optimal point that at the same time satisfy our constraint.
Constrained optimization: Problems
Exercises on constrained optimization