Problem Set 9
Problem Set 9
- Maximize
subject to the constraints
,
,
.
- Maximize
subject to





0
- Use a phase diagram to analyze:
-
- For the matrix
![img13.png $\displaystyle A=\left[ \begin{array}{cc} 2 & 1 \\ 1 & 2 \end{array} \right]$](http://economics.thacher.us/Home/teaching2/mathematical-economics/problem-sets/ps9/img13.png)
- Write the characteristic equation and find the characteristic roots
- Find the eigenvectors corresponding to the characteristic equation.
- Repeat for the matrix
![img14.png $\displaystyle A=\left[ \begin{array}{ccc} 1 & 0 & 1 \\ 0 & 1 & 1 \\ 1 & 1 & 2 \end{array} \right]$](http://economics.thacher.us/Home/teaching2/mathematical-economics/problem-sets/ps9/img14.png)
- Draw the
phase diagram and conduct stability analysis for the following:
-
- Consider the problem discussed in class:


- Consider the case where
is flatter than
. Under what
conditions will this be an unstable focus? An unstable node?
- Consider the case where
is flatter than
. What can
you conclude about the steady state?
- Consider the case where
Jennifer Anne Thacher 2008-12-04
