IDEAS home Printed from https://ideas.repec.org/p/nad/wpaper/20230082.html
   My bibliography  Save this paper

Bounding Comparative Statics under Diagonal Dominance

Author

Listed:
  • Jordan Norris
  • Charles Johnson
  • Ilya Spitkovsky

    (Division of Social Science)

Abstract

A core purpose of economic modeling is to conduct comparative static analyzes. Often one is interested in its qualitative features, such as if the e ect of a shock is positive or above one. Yet, except in highly-stylized models, the theoretically implied relationships are intractable, and empirically demanding, requiring complete identication of the model. We derive new bounds on comparative statics that are more tractable and feasible under partial identi cation. We require only that the Jacobian is diagonally dominant | intuitively, there is limited feedback in the model. We demonstrate application in two canonical models: a network game and a model of oligopoly competition. JEL Codes: C3, D85

Suggested Citation

  • Jordan Norris & Charles Johnson & Ilya Spitkovsky, 2023. "Bounding Comparative Statics under Diagonal Dominance," Working Papers 20230082, New York University Abu Dhabi, Department of Social Science, revised Jan 2023.
    • Handle: RePEc:nad:wpaper:20230082
    as

    Download full text from publisher

    File URL: https://nyuad.nyu.edu/content/dam/nyuad/academics/divisions/social-science/working-papers/2023/0082.pdf
    File Function: First version, 2020
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yann Bramoullé & Andrea Galeotti & Brian Rogers, 2016. "The Oxford Handbook of the Economics of Networks," Post-Print hal-01447842, HAL.
    2. Yann Bramoullé & Andrea Galeotti & Brian Rogers, 2016. "The Oxford Handbook of the Economics of Networks," Post-Print hal-03572533, HAL.
    3. Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Finn Christensen, 2023. "Comparative Statics for Difference-in-Differences," Working Papers 2023-08, Towson University, Department of Economics, revised Nov 2023.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S Anukriti & Catalina Herrera‐Almanza & Praveen K. Pathak & Mahesh Karra, 2020. "Curse of the Mummy‐ji: The Influence of Mothers‐in‐Law on Women in India†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1328-1351, October.
    2. Vasco M. Carvalho & Alireza Tahbaz-Salehi, 2019. "Production Networks: A Primer," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 635-663, August.
    3. Yujiro Kawasaki & Kenmei Tsubota, 2019. "Myopic or farsighted: bilateral trade agreements among three symmetric countries," Letters in Spatial and Resource Sciences, Springer, vol. 12(3), pages 233-256, December.
    4. Nicolas Houy & Frédéric Jouneau & François Le Grand, 2020. "Defaulting firms and systemic risks in financial networks: a normative approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(2), pages 503-526, September.
    5. Antonio Cabrales & Piero Gottardi & Fernando Vega-Redondo, 2017. "Risk Sharing and Contagion in Networks," The Review of Financial Studies, Society for Financial Studies, vol. 30(9), pages 3086-3127.
    6. Timothy G. Conley & Nirav Mehta & Ralph Stinebrickner & Todd Stinebrickner, 2024. "Social Interactions, Mechanisms, and Equilibrium: Evidence from a Model of Study Time and Academic Achievement," Journal of Political Economy, University of Chicago Press, vol. 132(3), pages 824-866.
    7. Francis Bloch & Bhaskar Dutta & Stéphane Robin & Min Zhu, 2016. "The formation of partnerships in social networks," Post-Print halshs-01421347, HAL.
    8. Soeiro, Renato & Adrego Pinto, Alberto, 2019. "Social power as a solution to the Bertrand Paradox," MPRA Paper 94271, University Library of Munich, Germany.
    9. Rusinowska, Agnieszka & Taalaibekova, Akylai, 2019. "Opinion formation and targeting when persuaders have extreme and centrist opinions," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 9-27.
    10. Thomas J. Sargent & John Stachurski, 2022. "Economic Networks: Theory and Computation," Papers 2203.11972, arXiv.org, revised Jul 2022.
    11. Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2020. "Peer Effects in Networks: A Survey," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 603-629, August.
    12. Muscillo, Alessio & Pin, Paolo & Razzolini, Tiziano & Serti, Francesco, 2018. "Does "Network Closure" Beef up Import Premium?," IZA Discussion Papers 12036, Institute of Labor Economics (IZA).
    13. Guido M. Kuersteiner & Ingmar R. Prucha, 2020. "Dynamic Spatial Panel Models: Networks, Common Shocks, and Sequential Exogeneity," Econometrica, Econometric Society, vol. 88(5), pages 2109-2146, September.
    14. Matthew O. Jackson & Stephen M. Nei & Erik Snowberg & Leeat Yariv, 2022. "The Dynamics of Networks and Homophily," NBER Working Papers 30815, National Bureau of Economic Research, Inc.
    15. Simon Schopohl, 2017. "Information Transmission in Hierarchies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01491930, HAL.
    16. Díaz, Carlos & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2021. "Leaders in juvenile crime," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 638-667.
    17. Zenou, Yves & Boucher, Vincent & Tumen, Semih & Vlassopoulos, Michael & Wahba, Jackline, 2020. "Ethnic Mixing in Early Childhood: Evidence from a Randomized Field Experiment and a Structural Model," CEPR Discussion Papers 15528, C.E.P.R. Discussion Papers.
    18. Beugnot, Julie & Fortin, Bernard & Lacroix, Guy & Villeval, Marie Claire, 2019. "Gender and peer effects on performance in social networks," European Economic Review, Elsevier, vol. 113(C), pages 207-224.
    19. Castagna, Alina & Chentouf, Leila & Ernst, Ekkehard, 2017. "Economic vulnerabilities in Italy: A network analysis using similarities in sectoral employment," GLO Discussion Paper Series 50, Global Labor Organization (GLO).
    20. Vincent Boucher, 2017. "Selecting Equilibria using Best-Response Dynamics," Economics Bulletin, AccessEcon, vol. 37(4), pages 2728-2734.

    More about this item

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nad:wpaper:20230082. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alizeh Batra (email available below). General contact details of provider: https://edirc.repec.org/data/ecnyuae.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.