Centre for Development Economics
and
Department of Economics, Delhi School of Economics

ANNOUNCE A SEMINAR

Optimization in Economies
with Nonconvexities


by

Suchismita Tarafdar
Arizona State University

On Friday, March 26, 2010 at 3:00 p.m.

Venue : New Seminar Room [First Floor]
Department of Economics, Delhi School of Economics

All are cordially invited

Abstract

Nonconvex optimization is becoming the fashion to solve constrained optimization problems in economics. Classical Lagrangian does not necessarily represent a nonconvex optimization problem. In this paper, we give conditions under which the Classical Lagrangian serves as an exact penalization of a nonconvex programming. This has a simple interpretation and is easy to solve. We use this Classical Lagrangian to provide su¢ cient conditions under which value function is Clarke differentiable with di¤erential bounds. The existence of Clarke envelopes has numerous potential examples in lattice programming, nonclassical growth theory and macroeconomics, Negishi methods, nonstationary dynamic lattice programming, and duopoly problems. Most importantly, the nonlinear duality theorem of this paper is used to provide generalized envelopes discussed in our companion paper.