2015年1月22日 · For example when you are talking about profit maximization starting from a profit function $\pi(q)$, the main condition for a maximum is that: $$\frac{\partial \pi}{\partial q}=0$$ This is the FOC (first order condition).

2023年2月28日 · It's not quite possible to have "FOC greater than 0", since the FOC is a condition, not a number. What is really meant here is the derivative of the utility function. What is really meant here is the derivative of the utility function.

2015年3月24日 · In Gali's book (chapter 3), the FOC of a firm is given by: $$(\\sum_{k=0}^\\infty \\theta^k E_k(Q_{t,t+k} Y_{t+k|t} (P_t^*/P_{t-1} - \\alpha MC_{t,t+k} \\beta_{t-1,t ...

2021年2月19日 · $\begingroup$ FOC are \textit{necessary} for an inner optimum (can be a max or min or saddle) and SOC (often) allow to characterize the type of optimum. At the boundaries (when x go to 0 or 1) there can be a max (or a sup), a min (or …

I found the same FOC in a paper from Ferede (Dynamic Scoring in the Ramsey Growth Model, here) and he says, that it is obtained by combining the first order conditions of the utility maximization with respect to capital and consumption (page 5).

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2023年11月24日 · Stack Exchange Network. Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

2015年8月25日 · GHH Preferences: FOC. Ask Question Asked 9 years, 7 months ago. Modified 9 years, 7 months ago. Viewed 552 ...

2015年5月27日 · If so, don't you just solve for ideal values of C and N, rather than solving for either parties FoC? $\endgroup$ – RegressForward Commented May 28, 2015 at 14:57

2023年4月7日 · This may seem simple, but weirdly when I first learnt this, I more just associated the conditions with actual order and a sense of rigourousness. I.e. the FOC was the first thing we did, and then the SOC was the second thing we did, and it felt a bit more strict. Rather than associating it explicitly with derivatives. Thanks!