When are Comparative Dynamics Monotone?
AbstractA common problem in dynamic economic theory is to determine when an increase in a parameter and/or an initial condition increases the future dynamics of a theoretical economy. This paper provides conditions that are necessary and sufficient for making statements of this type. The result is applicable to situations with a single agent or with many agents in the presence or absence of uncertainty. The result holds for general notions of what it means for a parameter, an initial condition or even the dynamics of a model to be increasing.
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Bibliographic InfoPaper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~03-03-12.
Date of creation: 12 Mar 2003
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Postal: Georgetown University Department of Economics Washington, DC 20057-1036
Web page: http://econ.georgetown.edu/
Postal: Marcia Suss Administrative Officer Georgetown University Department of Economics Washington, DC 20057-1036
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- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
- D90 - Microeconomics - - Intertemporal Choice - - - General
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