Comparative statics by adaptive dynamics and the correspondence principle

摘要

The intuition behind comparative statics results is usually dynamic in nature. The economic explanation for why differences in endogenous variables result from variations in exogenous variables often takes the form of some sequential adjustment process. For example, consider the account by Milgrom, Qian, and Roberts (1991) of technological and organizational changes in modern manufacturing: "... the falling costs of high-speed data communication, data processing, and flexible, multitask equipment lead to increases in the directly affected activities, which through a web of complementarities then lead to increases in a set of related activities as well."