Multiple Equilibria and Structural Changes in Economic Systems

Abstract

One of the most important subjects in economic analysis is the examination of the effects of changes in external parameters upon the behavior of economic variables. The analysis of such effects is called comparative analysis. Comparative statics analysis and comparative dynamics analysis differ according to whether the analysis is completed for a static or a dynamic model. When the system is stable, the comparative dynamics analysis is called the correspondence principle by Samuelson. We call comparative analysis as explored in Samuelson’s Foundations, traditional comparative analysis. In a sense, this book is intended to study problems of comparative analysis which are neglected in traditional comparative analysis.