First order condition

 

Home
Site Map
Add Term
Search
About Us
Contributors

First order condition

One of the mathematical necessary conditions for maximization, used routinely in solving economic models. Typically, it consists of setting equal to zero the derivative of the function being maximized (or its Lagrangian) with respect to a variable that can be controlled.



Similar Matches

Conditional insurance

Conditional insurance

The borrower must sign up to one or more insurance policy with the lender in order to take out a specific mortgage. Check that the insurance premiums are competitive. 


Statement of condition

Statement of condition

A document describing the status of assets, liabilities, and equity of a person or business at a particular time.


Conditionality

Conditionality

The requirements imposed by the IMF and World Bank on borrowing countries to qualify for a loan, typically including a long list of budgetary and policy changes comprising a structural adjustment program.


Conditional sales contracts

Conditional sales contracts

Similar to equipment trust certificates, except that the lender is either the equipment manufacturer or a bank or finance company to which the manufacturer has sold the conditional sales contract.


Marshall-Lerner condition

Marshall-Lerner condition

The condition that sum of the elasticities of demand for exports and imports exceed one (in absolute value); that is, hX + hM > 1, where hX, hM are the demand elasticities for a country's exports and imports respectively, both defined to be positive for downward sloping demands. Under certain assumptions, this is the condition for a depreciation to improve the trade balance, for the exchange market to be stable, and for international barter exchange to be stable.


Further Suggestions

Report of Condition and Income
Conditional Sales Contract
Conditional call options
Technical condition of a market
Condition of the sale
bargain conditions apply
CC and Rs (Covenants, Conditions and Restrictions)


 
All rights Reserved. Do not copy without permission.