Results for Economic Comparative Statics of Steady-States of Higher-Order Discrete Dynamic Systems

Abstract

Non-linear systems of difference equations of various orders arise naturally in many economic models in which the dynamics is explicit. In such contexts, economists often have potential interest in the comparative statics of locally stable steady-states, with respect to the system's parameters.

This paper presents some intuitive and directly usable results for such comparative statics. That is, they establish some usable consequences of qualitative assumptions or information concerning the features of the original dynamic system on the signs and magnitudes of the resulting expressions for comparative statics.