Distributional Comparative Statics
An important set of questions in economics concern how changes in the distribution of economic parameters (income, wealth, productivity, distortions, information, etc.) impact individual choices and market outcomes. We currently do not have tools to answer such questions. In this paper, I develop a theory of distributional comparative statics that addresses this set of issues. Central to the developments is a new concept called strategic risk-aversion which determines the outcome of the most distributional comparative statics exercises. As illustrations, I analyze the relationship between savings and the inequality, ask how risk influences agents' behavior in Bayesian games, and study con-cavity of policy functions in general stochastic dynamic programming problems.
|Date of creation:||Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.economics.bham.ac.uk
More information through EDIRC
References listed on IDEAS
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.:
- Cowan, Simon & Vickers, John & Aguirre Pérez, Iñaki, 2009.
"Monopoly Price Discrimination and Demand Curvature,"
2009-39, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
- I�aki Aguirre & Simon Cowan & John Vickers, 2010. "Monopoly Price Discrimination and Demand Curvature," American Economic Review, American Economic Association, vol. 100(4), pages 1601-15, September.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, August.
- Mark Huggett, 2004.
"Precautionary Wealth Accumulation,"
Review of Economic Studies,
Oxford University Press, vol. 71(3), pages 769-781.
- Daron Acemoglu & Martin Kaae Jensen, 2012.
"Robust Comparative Statics in Large Dynamic Economies,"
NBER Working Papers
18178, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Martin Kaae Jensen, 2012. "Robust Comparative Statics in Large Dynamic Economies," Levine's Working Paper Archive 786969000000000507, David K. Levine.
- Acemoglu, Daron & Jensen, Martin Kaae, 2013.
"Aggregate comparative statics,"
Games and Economic Behavior,
Elsevier, vol. 81(C), pages 27-49.
- John K.-H Quah, 2007. "The Comparative Statics of Constrained Optimization Problems," Econometrica, Econometric Society, vol. 75(2), pages 401-431, 03.
- repec:dgr:kubcen:2011055 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:bir:birmec:12-08. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Colin Rowat)
If references are entirely missing, you can add them using this form.