Monotone Comparative Statics.¶
Milgrom, P., & Shannon, C. (1994). Monotone Comparative Statics. Econometrica, 62(1), 157-180.
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1 citation across 1 artifact.
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Primes¶
- Comparative Statics
- The implicit-function theorem turns "re-solve the entire non-linear system" into "compute a Jacobian and invert it," and the monotone-comparative-statics results turn sign questions into checks of supermodularity that can often be read off the structure of the objective with no optimization at all.
This sourceEstablishes that monotone comparative-statics conclusions follow from supermodularity and single-crossing (ordinal complementarity) conditions without smoothness or concavity. (
- The implicit-function theorem turns "re-solve the entire non-linear system" into "compute a Jacobian and invert it," and the monotone-comparative-statics results turn sign questions into checks of supermodularity that can often be read off the structure of the objective with no optimization at all.
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