I've gone over the original matrix a few times and can't see how it can be any different. I think that these are constrained optimums because they are optimum demand functions. The matrix is a Skutsky matrix which by definition is identical to the Hessian of the expenditure function. If my...
Homework Statement
I have the matrix A = [-10 3.5 3; 3.5 -4 0.75; 3 0.75 -0.75]
I need to determine whether this is negative semidefinite.
Homework Equations
The Attempt at a Solution
1st order principal minors:
-10
-4
-0.75
2nd order principal minors:
2.75
-1.5...