Please use this identifier to cite or link to this item: http://hdl.handle.net/2381/39653
Title: Distributional Comparative Statics
Authors: Jensen, Martin Kaae
First Published: 17-May-2017
Publisher: Oxford University Press (OUP)
Citation: Review of Economic Studies, 2017, rdx021.
Abstract: Distributional comparative statics is the study of how individual decisions and equilibrium outcomes vary with changes in the distribution of economic parameters (income, wealth, productivity, information, etc.). This paper develops new tools to address such issues and illustrates their usefulness in applications. The central development is a condition called quasi-concave differences which implies concavity of the policy function in optimization problems without imposing differentiability or quasi-concavity conditions. The general take-away is that many distributional questions in economics which cannot be solved by direct calculations or the implicit function theorem, can be addressed easily with this paper’s methods. Several applications demonstrate this: the paper shows how increased uncertainty affects the set of equilibria in Bayesian games; it shows how increased dispersion of productivities affects output in the model of Melitz (2003); and it generalizes Carroll and Kimball (1996)’s result on concave consumption functions to the Aiyagari (1994) setting with borrowing constraints.
DOI Link: 10.1093/restud/rdx021
ISSN: 0034-6527
eISSN: 1467-937X
Links: https://academic.oup.com/restud/article/3829690/Distributional-Comparative-Statics
http://hdl.handle.net/2381/39653
Embargo on file until: 17-May-2019
Version: Post-print
Status: Peer-reviewed
Type: Journal Article
Rights: Copyright © Oxford University Press 2017. Deposited with reference to the publisher’s open access archiving policy.
Description: The file associated with this record is under embargo until 24 months after publication, in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.
Appears in Collections:Published Articles, Dept. of Economics

Files in This Item:
File Description SizeFormat 
RESTUD_final_version.pdfPost-review (final submitted author manuscript)430.48 kBAdobe PDFView/Open


Items in LRA are protected by copyright, with all rights reserved, unless otherwise indicated.