We investigate a class of infinite-dimensional, modular, graded Lie algebra in which the homogeneous components have dimension at most two. A subclass of these algebras can be obtained via a twisted loop algebra construction from certain finite-dimensional, simple Lie algebras of Albert-Frank type. Another subclass of these algebras is strictly related to certain graded Lie algebras of maximal class, and exhibits a wide range of behaviours.
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Caranti et al. (1999) studied this question.
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