Local and nonlocal comparative static analysis of economic systems

摘要

A complete differential-equation system has been developed for the local and nonlocal comparative static analysis of general parametrized economic systems Ψ(x, α) = 0. The differential equations allow both qualitative and quantitative sensitivity studies at parameter points or over parameter intervals. A FORTRAN program COMSTAT is now available for the numerical integration of the differential equations. The only input requirements are Ψ(·) and initial conditions. Initialization is rendered routine by a two-stage application of COMSTAT. Derivatives are automatically evaluated via a generalized Wengert method, freeing the user from ever having to form analytical derivatives. COMSTAT is applied to a problem in optimal economic growth to show the sensitivity of the steady-state capital-labor ratio to changes in the time preference parameter.