RE: [OPE] Constant returns to scale - IRS

Comparative static modelling enables the abstract prediction of the movement of the system following a change in the data. This may help to focus interpretation of a dynamic model or theory. If income changes we expect a tendency for demand to shift, and so prices and quantities traded to shift. This is an insight into how markets function.

michael

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Dr Michael Williams, BA, MSc, PhD

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From: ope-bounces@lists.csuchico.edu [mailto:ope-bounces@lists.csuchico.edu] On Behalf Of Gerald Levy
Sent: 05 October 2008 20:03
To: Outline on Political Economy mailing list
Subject: Re: [OPE] Constant returns to scale - IRS

> Comparative static abstractions can help in the difficult task of interpreting dynamic models.

Hi Michael W:

What would be an example of this?

In solidarity, Jerry

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Received on Sun Oct 5 15:45:05 2008