comparative statics

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The analysis of how the equilibrium position in an economic model would change if the values of the exogenously fixed parameters of the model were altered. Such alterations can involve exogenously given quantities, for example a country's population, or parameters describing behaviour, for example the propensity to save. ‘Comparative’ indicates that two or more equilibrium states of the economy are being compared. ‘Statics’ indicates that each state is simply considered as an equilibrium and that transition between equilibria is not analysed.

Subjects: Economics.

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