Comparative Statics by Adaptative Dynamics and the Correspondence Principle

Federico Echenique

No 2099, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: This paper formalizes the relation between comparative statics and the out-of-equilibrium explanation for how a system evolves after a change in parameters. The paper has two main results. First, an increase in an exogenous parameter sets o learning dynamics that involve larger values of the endogenous variables. Second, equilibrium selections that are not monotone increasing in the exogenous variables must be predicting unstable equilibria. Moreover, under some conditions monotone comparative statics and stability are equivalent.

JEL-codes: C61 C62 C72 C73 (search for similar items in EconPapers)
Pages: 37 pages
Date: 1999-12
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https://hdl.handle.net/20.500.12008/1907 (application/pdf)

Related works:
Journal Article: Comparative Statics by Adaptive Dynamics and the Correspondence Principle (2002)
Working Paper: Comparative Statics by Adaptive Dynamics and The Correspondence Principle (2000)
Working Paper: Comparative Statics by Adaptive Dynamics and The Correspondence Principle (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ude:wpaper:2099

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