| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP12611
|
| DP12611 Lie Symmetries and Essential Restrictions in Economic Optimization |
| Eran Yashiv
|
| 发表日期 | 2018-01-17
|
| 出版年 | 2018
|
| 语种 | 英语
|
| 摘要 | In optimization problems in Economics there are explicit or implicit assumptions about the underlying structure. In particular, one typically assumes that optimal behavior will remain invariant, in a sense to be precisely defined. Inter alia, this relates to the rationale for empirical estimation of invariant structural models.
This paper has three goals. First, to show how relevant restrictions pertaining to this invariance can be derived using the algebraic technique of Lie symmetries of differential equations. Importantly, the symmetries provide solutions of the optimization problems in question or generate rich information with respect to the properties of the solutions, when no closed-form solutions exist. Second, to provide an example of implementation of this algebra, using an issue of substance, thereby gaining insight on a key topic in utility theory and consumer-investor choice. Third, to outline topics that are at the research frontier, which would be amenable to such analysis, thereby providing a road map for a potentially important new literature. |
| 主题 | Financial Economics
; Monetary Economics and Fluctuations
|
| 关键词 | Economic optimization
Invariance
Lie symmetries
Differential equations
Consumption and portfolio choice
Hara utility
Structural econometrics
Macroeconomics
Finance
|
| URL | https://cepr.org/publications/dp12611
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/541423
|
推荐引用方式
GB/T 7714 |
Eran Yashiv. DP12611 Lie Symmetries and Essential Restrictions in Economic Optimization. 2018.
|
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