Example: bankruptcy
1 The adjoint method
The two equations di er in form only by the adjoint. If g(x;p) = 0 is a nonlinear equation, then software that solves the system for xgiven a particular value for pquite likely solves, at least approximately, a sequence of linear equations of the form @ xg(x;p) x= g(x;p): (3) @ xg= g x is the Jacobian matrix for the function g(x;p), and (3) is ...
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