No label defined (Q4512272)

The problem of finding a demand function in almost ideal demand system is reduced to the problem \[ \min_{\{\vec \xi; \vec \xi_{j}\}}\sum_{j=1}^{n-1}\left\{{\langle\vec \xi, \vec \xi_{j}\rangle\over\langle\vec \xi_{j},\vec a\rangle}[1+\langle\vec b, \vec \xi_{j}\rangle^2]\right\} \] with constraints \(X\vec a=\vec\xi, \langle\vec \xi,\vec a\rangle +\overline k=0, \langle\vec \xi,\vec e\rangle=0, X\vec e=0, \overline k\doteq 2k+2\langle c\vec \beta-\vec w, \vec a\rangle\); \(\langle\vec \xi_{i},\vec \xi_{j}\rangle=\delta_{ij}, i,j=1,\dots, n-1\), \(\langle\vec \xi_{j},\vec e\rangle=0\), \(j=1,\dots,n- 1\), \(\vec \xi\doteq \vec w-\vec \alpha-c\vec \beta\), where \(X:E^{n}\to E^{n}\) is an incidence matrix of the demand function; \(\vec \xi_{j}, j=1,\dots, n-1\) are eigenvectors of the matrix \(X\); \(\vec w, \vec \beta\in E^{n}, c,k\in \mathbb{R}^1\) are fixed parameters of the economical system; \(\vec b\in E^{n}\) is an a priori known parameter of the price vector; \(\langle\cdot,\cdot\rangle\) is the inner product in \(E^{n}\); \(n\) is a number of goods in the economical system; \(\vec e=(1,1,\ldots,1)\in E^{n}\). Sufficient conditions for the existence of a solution to the problem are the following: \(\vec\xi_{j}=\sum_{i=1}^{n-1}(A^{-1})_{ji}\vec e_{j}, A_{n- 1,j}=1/\sqrt{n-1}, \forall j=1,\dots, n-1\), where \(\vec e_{j}\in E_{*}^{n-1}\) is an orthonormal basis in \( E_{*}^{n-1}\); \( E_{*}^{n- 1}\) is an orthogonal space to \(\vec e\in E^{n}\); \(A\) is an orthogonal matrix \(A\in Hom( E_{*}^{n-1})\). The authors propose a method to solve the considered problem under these conditions.