function LAMBDA = L(state0,MU)
%LAMBDA = L(state0,MU) computes the equilibrium value of LAMBDA, the multiplier in the implementability constraint of the Ramsey problem. 
%Inputs: state0 (the state of the economy) and MU (the markup)
%Output: LAMBDA and DIST (the output of findL, see below)
%Calls: findL.m (via fsolve.m)
%(c) Stephanie Schmitt-Grohe and Martin Uribe


LAMBDA_ini = .4;

OPTIONS = OPTIMSET('tolx',1e-12,'tolfun',1e-12, 'MaxFunEvals', 10000);

[LAMBDA,DIST] = fsolve('findL',LAMBDA_ini,OPTIONS,state0,MU);

LAMBDA = abs(LAMBDA)