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Kuhn-Tucker conditions and linear homogeneity

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  • Albert, Max

Abstract

The paper proves a theorem on modified Kuhn-Tucker conditions for the case where a linearly homogenous function is part of the target function. These conditions are necessary and sufficient if target function and constraints satisfy certain re-quirements. Moreover, the envelope theorem can be applied as if the Standard Kuhn-Tucker conditions were valid. An application to a problem in the theory of production illustrates the usefulness of the theorem.
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Suggested Citation

  • Albert, Max, 1995. "Kuhn-Tucker conditions and linear homogeneity," Economics Letters, Elsevier, vol. 48(3-4), pages 267-272, June.
    • Handle: RePEc:eee:ecolet:v:48:y:1995:i:3-4:p:267-272
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    References listed on IDEAS

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    1. Paul A. Samuelson, 1953. "Prices of Factors and Goods in General Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 21(1), pages 1-20.
    2. Albert, Max, 1995. "Kuhn-Tucker conditions and linear homogeneity," Economics Letters, Elsevier, vol. 48(3-4), pages 267-272, June.
    3. A. D. Woodland, 1977. "A Dual Approach to Equilibrium in the Production Sector in International Trade Theory," Canadian Journal of Economics, Canadian Economics Association, vol. 10(1), pages 50-68, February.
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    1. Albert, Max, 1995. "Kuhn-Tucker conditions and linear homogeneity," Economics Letters, Elsevier, vol. 48(3-4), pages 267-272, June.
    2. Albert, Max & Meckl, Jürgen, 1997. "Efficiency wages, unemployment and welfare: A trade theorists' guide," Discussion Papers, Series II 348, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".

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