# Questions tagged [comparative-statics]

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### Ratio of two Jensen inequality

I have these pair of numbers $(a, b) = (\frac{4}{9}, \frac{1}{9})$ and $(c, d) = (\frac{1}{2}, \frac{1}{6})$. (Number mean nothing, just for illustration and simplification) Note that - (a, b) are ...
1 vote
90 views

### How do I use total derivatives of an implicit function to solve this problem?

Suppose a consumer has a utility function $u(x_1,x_2)$, where $u_1>0, u_2>0, u_{11}<0,u_{22}<0,u_{12}=u_{21}>0$. The prices are fixed. The consumer's income comes from working and the ...
191 views

### Question About Implicit Function Theorem and Comparative Statics - Mathematics for Economists by Simon and Blume Chapter 15 Exercise 32

I am studying Implicit Function Theorem and its application on comparative statics using Mathematics for Economists by Simon and Blume. Here is the question: Consider a pure exchange economy with two ...
1 vote
34 views

### Meaning of "everything else remaining the same"

Suppose in an economy, there is a representative firm, the government and a representative household who all have their individual budget constraints. The household maximizes its utility function and ...
16 views

### How to derive (mathematically and intuitively) the relationship between expected price level and natural rate of employment?

We know that $W = \mathbb{E}(P)f(u, z)$ , so that nominal wage $W / P = (\mathbb{E}(P) / P)f(u, z)$ From Blanchard. Furthermore, $W / P = 1/(1+m)$ (where m is defined as the markup on wages to ...
1 vote
84 views

### Income and Substition Effect: Assumptions: Normality vs. Inferiority of Goods

A question concerning the income and substitution effect when the wage changes Let us assume that the substitution effect leads to more less leisure as the relative price of leasure increases, and ...
99 views

33 views

### Super and sub modular games

I was trying to read up on super and sub modular games. I have started with basic survey papers like the one by Rabah Amir (2005). Research papers assume a lot of common knowledge (the papers that I ...
330 views

125 views

### Why should $dp_2=dm =0$ in this problem?

I am studying Essential Mathematics for Economic Analysis and in chapter 12 problem 10 there is a problem that I can solve but I do not understand why the solution works. The problem asks us to ...
211 views

### Brueckner's basic urban model, comparative statics

I was reading through Jan Brueckner's "Lectures on Urban Economics" (2011), which is a "rigorous, but non-technical" explanation of various topics in urban economics. It was ...
156 views

### Comparative statics question with an application

In the state of Mexas, two politicians (Mr. BO, or "Politician 1" and Mr. TC, or "Politician 2") are competing intensely for a senate seat. The two politicians spend on advertising to increase the ...
346 views

### Topkis' Theorem

Suppose my optimization problem is stated as follows $\max\limits_x f(x,t)$ $s.t.$ $g(x,t) \leq 0$ I am interested in finding the direction $x^*$ changes with the parameter $t$. Can someone ...
130 views

### What are some helpful online tools (databases, etc..) for economic analysts?

More specifically, I'm looking for a online database of US economic statistics that is regularly updated. Most of my searches result in older data, that is not particularly useful for what I need it ...
76 views

1 vote