CAREER: Comparative Statics and Dynamic Models

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This CAREER award will extend the theory and applications of comparative statics. Monotone comparative statics are central to modern economic analysis. These mathematical methods allow us to build models that can predict how decisions and results react to changes in the economic environment. These methods can be used in dynamic environments to study many important economic problems, including capital growth, the timing of investment decisions, search and experimentation, and dynamic asset pricing.This project will extend the theory and applications of comparative statics, with a focus on (1) the interplay between comparative statics and dynamic methods, (2) generalizations and applications of the single-crossing property, a mathematical concept that underlies much comparative statics theory, (3) the study of similarity and interdependence between economic decision makers, and (4) a variety of applications. This include applications to political economy, finance, contract theory, and a variety of different search and experimentation models. The research also develops new methods for dynamic modeling that can be used to create new dynamic models that can be analyzed with comparative statics methods as opposed to numerical analysis. The award also funds multiple educational activities that are designed to make monotone comparative statics methods available to a broader range of social scientists and students. This includes course development, a specialized textbook, and a specialized workshop.