Abstract
A general model of dynamic optimization, deterministic, in discrete time, and with infinite time horizon is considered. We assume that there are parameters in the formulation of the model. Conditions for stability of the optimal solution are studied. Analysis of steady state comparative statics and comparative dynamics are presented. In addition we apply these results to a quadratic case and to an economic example: a one sector growth model.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Amir, R., Mirman, L. and Perkins, W. (1991). One-sector non-classical optimal growth: optimality conditions and comparative dynamics.International Economic Review,32 (3), 625–644.
Araujo, A. (1991). The once but not twice differentiability of the policy function.Econometrica,59 (5), 1383–1393.
Araujo, A. and Scheinkman, J. A. (1979). Notes on comparative dynamics. Essays in honour of Lionel McKenzie. Edited by Green and J.A. Sheinkman, Academic Press.
Becker, R. (1985). Comparative dynamics in aggregate models of optimal capital accumulation.The Quarterly Journal of Economics,100, 1235–1256.
Boldrin, M. and Montrucchio, L. (1986). On the indeterminacy of capital accumulation paths.Journal of Economic Theory,40, 26–39.
Boldrin, M. and Montrucchio, L. (1989). On the differentiability of the policy function.Manuscript.Department of Economics. University of California. Los Angeles.
Caputo, M. (1987). The qualitative content of simple dynamic optimization models.Ph. D. dissertation. University of Washington.
Caputo, M. (1989). The qualitative content of renewable resource models.Natural Resource Modelling,3 (2), 241–259.
Caputo, M. (1990a). How to do comparative dynamics on the back of an evelope in optimal control theory.Journal of Economic Dynamics and Control,14 (3/4), 655–583.
Caputo, M. (1990b). Comparative dynamics via envelope methods in variational calculus.Review of Economic Studies,57, 689–697.
Caputo, M. (1990c). New qualitative properties in the competitive non-renewable resource extracting model of the firm.International Economic Review,31 (4), 829–839.
Caputo, M. (1992). Fundamental symmetries and qualitative properties in the adjustment cost model of the firm.Journal of Mathematical Economics,21, 99–112.
Levhari, D. and Liviatan, N. (1972). On the stability in the saddle-point sense.Journal of Economic Theory,4, 88–93.
Santos, M. (1991). Sooothness of the policy function in discrete time economic models.Econometrica,59 (5), 1365–1382.
Santos, M. (1992a). Differentiability and comparative analysis in discrete-time infinite-horizon optimization.Journal of Economic Theory,57, 222–229.
Santos, M. (1992b). Sobre la programación dinámica en modelos económicos.Revista Espiñola de Economía (2a Época),9 (1), 7–29.
Santos, M. (1993). On high-order differentiability of the policy functions.Economic Theory,3, 565–570.
Silberberg, E. (1990).The structure of economics: a mathematical analysis. Second edition, Mc. Graw Hill.
Stokey, N. and Lucas, R. (1989).Recursive methods in economic dynamics. Harvard University Press.
Author information
Authors and Affiliations
Additional information
This research was financed by the Universidad Complutense de Madrid, project PR295/95-6073
Rights and permissions
About this article
Cite this article
Antón, J., Cerdá, E. & Huergo, E. Sensitivity analysis in A class of dynamic optimization models. Top 6, 97–121 (1998). https://doi.org/10.1007/BF02564800
Received:
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF02564800