Optimization in Non-Standard Problems. An Application to the Provision of Public Inputs
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This paper describes a new direct search method for solving non-standard constrained optimization problems for which standard methodologies do not work properly. Our method (the Rational Iterative Multisection-RIM-algorithm) consists of different stages that can be interpreted as solutions according to different precision requirements. We have performed an application of RIM method to the case of public inputs provision. We prove that the RIM approach and standard methodologies achieve the same results with regular optimization problems while the RIM algorithm takes advantage over others comparable direct-search methods when facing non-standard optimization problems.
KeywordsDirect search Constrained optimization Multisection Optimal taxation Public input
JEL ClassificationC6 H21 H3 H41 H43
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