UZH-Logo

Maintenance Infos

Numerical optimization methods in economics


Schmedders, K (2008). Numerical optimization methods in economics. In: Durlauf, S N; Blume, L E. The new Palgrave dictionary of economics, Ed. 2. New York: Palgrave Macmillan, 4647-4666.

Abstract

Optimization problems are ubiquitous in economics. Many of these problems are sufficiently complex that they cannot be solved analytically. Instead economists need to resort to numerical methods. This article presents the most commonly used methods for both unconstrained and constrained optimization problems in economics; it emphasizes the solid theoretical foundation of these methods, illustrating them with examples. The presentation includes a summary of the most popular software packages for numerical optimization used in economics, and closes with a description of the rapidly developing area of mathematical programs with equilibrium constraints, an area that shows great promise for numerous economic applications.

Optimization problems are ubiquitous in economics. Many of these problems are sufficiently complex that they cannot be solved analytically. Instead economists need to resort to numerical methods. This article presents the most commonly used methods for both unconstrained and constrained optimization problems in economics; it emphasizes the solid theoretical foundation of these methods, illustrating them with examples. The presentation includes a summary of the most popular software packages for numerical optimization used in economics, and closes with a description of the rapidly developing area of mathematical programs with equilibrium constraints, an area that shows great promise for numerous economic applications.

Altmetrics

Downloads

231 downloads since deposited on 09 Feb 2009
24 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Book Section, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2008
Deposited On:09 Feb 2009 13:11
Last Modified:05 Apr 2016 12:47
Publisher:Palgrave Macmillan
ISBN:978-0-333-78676-5
Publisher DOI:https://doi.org/10.1057/9780230226203.1209
Permanent URL: https://doi.org/10.5167/uzh-9611

Download

[img]
Preview
Filetype: PDF (Original publication)
Size: 1MB
View at publisher

TrendTerms

TrendTerms displays relevant terms of the abstract of this publication and related documents on a map. The terms and their relations were extracted from ZORA using word statistics. Their timelines are taken from ZORA as well. The bubble size of a term is proportional to the number of documents where the term occurs. Red, orange, yellow and green colors are used for terms that occur in the current document; red indicates high interlinkedness of a term with other terms, orange, yellow and green decreasing interlinkedness. Blue is used for terms that have a relation with the terms in this document, but occur in other documents.
You can navigate and zoom the map. Mouse-hovering a term displays its timeline, clicking it yields the associated documents.

Author Collaborations