- optimization - Contradictory FOC and maximizing solution - Economics . . .
$\begingroup$ FOC are \textit{necessary} for an inner optimum (can be a max or min or saddle) and SOC (often) allow to characterize the type of optimum At the boundaries (when x go to 0 or 1) there can be a max (or a sup), a min (or an inf) with no FOC being satisfied $\endgroup$ –
- FOC for King–Plosser–Rebelo preferences - macroeconomics
I found the same FOC in a paper from Ferede (Dynamic Scoring in the Ramsey Growth Model, here) and he says, that it is obtained by combining the first order conditions of the utility maximization with respect to capital and consumption (page 5)
- Second Order Condition - Always means second derivative?
This may seem simple, but weirdly when I first learnt this, I more just associated the conditions with actual order and a sense of rigourousness I e the FOC was the first thing we did, and then the SOC was the second thing we did, and it felt a bit more strict Rather than associating it explicitly with derivatives Thanks!
- Maximizing a Cobb-Douglas Function - Economics Stack Exchange
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- utility - GHH Preferences: FOC - Economics Stack Exchange
GHH Preferences: FOC Ask Question Asked 9 years, 8 months ago Modified 9 years, 8 months ago Viewed 553
- Equilibrium with Externalities: Solving without FOC
If so, don't you just solve for ideal values of C and N, rather than solving for either parties FoC? $\endgroup$ – RegressForward Commented May 28, 2015 at 14:57
- FOCs for profit maximization using a transformation function
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- New-Keynesian Model: Log-linearizing the firms FOC
In Gali's book (chapter 3), the FOC of a firm is given by: $$(\\sum_{k=0}^\\infty \\theta^k E_k(Q_{t,t+k} Y_{t+k|t} (P_t^* P_{t-1} - \\alpha MC_{t,t+k} \\beta_{t-1,t
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