Mathematics for Economists

(Greg DeLong) #1

Constrained positive deÖnite matrixes


Now letx 1 = 0 ,x 2 = 1 ,x 3 =0 andλ= 1 ,which solves the equations.

H=


0


BB


@


0 0 2 0


0 4 0 0


2 0 0 0


0 0 0 0


1


CC


A.


The determinant is 0.The problem comes from the fact that( 0 , 1 , 0 )is not
a isolated local minimum asx 1 = 0 ,x 22 +x 32 =1 are all minimal solutions.
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