Comparative statics in dynamic programming models with an application to job search
AbstractThis paper presents a technique for qualitative comparative statics analysis in dynamic programming models. Let the value function v be the fixed point of a contraction mapping which depends differentially on some exogenous parameter theta. Then the derivative of v with respect to theta exists and is also the fixed point of a contraction mapping. Since this derivative is the fixed point of a contraction mapping its qualitative properties can be investigated using mathematical induction. This comparative statics methodology is illustrated with an application to a model of job search.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Dynamics and Control.
Volume (Year): 15 (1991)
Issue (Month): 4 (October)
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Web page: http://www.elsevier.com/locate/jedc
Other versions of this item:
- Albrecht, James W. & Holmlund, Bertil & Lang, Harald, 1986. "Comparative Statics in Dynamic Programming Models with an Application to Job Search," Working Paper Series 172, Research Institute of Industrial Economics, revised Aug 1991.
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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