... to the decision problem of an entrepreneur facing wage w, we recall that the labor hire decision given by equation (7) is a linear function ... The multiplicity of local maxima may be due to the computational methods available rather than the non-concavity of the ... See also the experience of Paulson and Townsend16 ( 2001) with LEB and other structural models. ... we used the MATLAB routine fmincon starting from a variety of predetermined guesses I6See their technical appendix foranbsp;...
|Title||:||Evaluation of Financial Liberalization|
|Author||:||Robert Townsend, Xavier Gine|
|Publisher||:||World Bank Publications - 2003|