Robust Comparative Statics in Large Dynamic Economies
Name
680685.pdf
Size
786.31 KB
Format
Adobe PDF
Checksum (MD5)
8bfc385b6852c362cb647df5a48e8ce1
Author(s)
Jensen, Martin Kaae
Acemoglu, K. Daron
Date Issued
June 2015
Journal
Journal of Political Economy
Publisher
University of Chicago Press
Citation
Acemoglu, Daron, and Martin Kaae Jensen. “Robust Comparative Statics in Large Dynamic Economies.” Journal of Political Economy 123, no. 3 (June 2015): 587–640. © 2015 The University of Chicago
Version
Final published version
Abstract
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; and 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.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1086/680685
