Some envelope theorems for integer and discrete choice variables.
The envelope theorem is a genuine workhorse of economic analysis. Typically, this theorem requires that the choice variables be continuous. This paper derives envelope theorems, previously unavailable in the literature, for use with integer and discrete choice variables. Our results, which are int...
| Published in: | International Economic Review Vol. 39; no. 3; pp. 623 - 635 |
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| Main Authors: | , |
| Format: | Article |
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Wiley-Blackwell
August 1998
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=512687622&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 512687622 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00206598 IER jtl: International Economic Review issn: 00206598 maglogo: N pubinfo: dt: August 1998 vid: 39 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 512687622 10.2307/2527393 ppf: 623 ppct: 12 formats: tig: atl: Some envelope theorems for integer and discrete choice variables. aug: au: Sah, Raaj K. Zhao, Jingang su: Economic decision making Integer programming sug: subj: Economic decision making Integer programming ab: The envelope theorem is a genuine workhorse of economic analysis. Typically, this theorem requires that the choice variables be continuous. This paper derives envelope theorems, previously unavailable in the literature, for use with integer and discrete choice variables. Our results, which are intuitive, thus make it possible to use the envelope theorem in a variety of analyses in which the natural description of choice variables is not continuous. Among such choice variables are the number of projects, plants, and a couple's children, as well as binary (yes-no) choices such as labor-force participation, home ownership, and migration. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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