Household Maximization

   {   hhmax.mpl   }

   {   GAMS Model Library, http://www.gams.com/modlib/libhtml/hhmax.htm }

   {   A Household Maximization Problem,  NLP,  Size: 4x4  }



TITLE
    HouseholdMax;

OPTIONS
    ModelType=Nonlinear
    ParserType=Extended

INDEX
    goods   := (brd,mlk);
    factors := (cap,lab);

DATA
    Alpha[goods] := (0.2,0.8);
    Px[goods]    := ( 1, 2);
    Pf[factors]  := ( 2, 1);
    FF[factors]  := (10,20);

VARIABLES
    X[goods];
    Int[goods];

MODEL

    MAX Utility =  Int[goods:=brd] * Int[goods:=mlk];

SUBJECT TO

    CalcProd[goods]: Int = X^Alpha;

    CalcX[goods]:    X = Alpha * SUM(factors: Pf * FF) / Px;

BOUNDS
    X >= 0.001;

END