Robust Comparative Statics in Large Dynamic Economies
نویسندگان
چکیده
We consider infinite-horizon economies populated by a continuum of agents subject to idiosyncratic shocks. This framework contains models of saving and capital accumulation with incomplete markets in the spirit of works by Bewley, Aiyagari, and Huggett, models of entry, exit and industry dynamics in the spirit of Hopenhayn’s work as well as dynamic models of occupational choice and search models as special cases. Robust and easy-to-apply comparative statics results are established with respect to exogenous parameters as well as various kinds of changes in the Markov processes governing the law of motion of the idiosyncratic shocks.
منابع مشابه
Sequential moves and Comparative Statics in Strategic Market Games
Strategic market games model strategic exchange economies as noncooperative simultaneous moves games. A recent paper by Bloch and Ghosal (J. Econ. Theory, 74 (1997), 368{384.) has shown that strategic market games might exhibit a rather counterintuitive comparative statics property: an increase in the number of traders on the own side of the market might increase the equilibrium utility for any...
متن کاملThe Comparative Statics of Collusion Models∗
We develop and illustrate a methodology for obtaining robust comparative statics results for collusion models in markets with differentiated goods by analyzing the homogeneous goods limit of these models. This analysis reveals that the impact of parameter changes on the incentives to deviate from collusion and the punishment profits are often of different order of magnitude yielding comparative...
متن کاملComparative Statics, English Auctions, and the Stolper-samuelson Theorem
We introduce a comparative-statics observation; we prove that the English auction is efficient in a model with interdependent valuations and n bidders; we generalize the StolperSamuelson Theorem to the case of more than 2 goods and factors of production and to non-square economies; and we illustrate how our comparative-statics observation is behind those seemingly unrelated economic proposition...
متن کاملSome Consequences of the Unknottedness of the Walras Correspondence
Two basic properties concerning the dynamic behavior of competitive equilibria of exchange economies with complete markets are derived essentially from the fact that the Walras correspondence has no knots. I. One can view the work of Debreu, E. and H. Dierker, Balasko and others that introduced the notions of regular economy and regular equilibrium, and studied the local uniqueness and other mo...
متن کاملAn Introduction to Monotone Comparative Statics
1. Overview Comparative statics (called sensitivity analysis in engineering fields) means characterizing how the endogenous outcomes of a model change with its exogenous parameters. The " statics " in the name is because one is simply comparing two versions of the model, for two different values of exogenous parameters, rather than tracing out a dynamic process of change. One can do comparative...
متن کامل