A Generalized Approach to Envelope Theorems

TLDR: In this paper, a generalized approach to envelope theorems that applies across a broad class of parameterized nonlinear optimization problems that arise typically in economic applications is developed. But the approach is limited to the case where the value function is locally Lipschitz and/or Clarke.

Abstract: We develop a generalized approach to envelope theorems that applies across a broad class of parameterized nonlinear optimization problems that arise typically in economic applications. In particular, we provide su¢ cient conditions under which the value function for a nonconvex, and/or nonsmooth program is locally Lipschitz and/or Clarke �