## Abstract

We develop easy-to-verify conditions to assure that a comparative statics exercise in a dynamic general equilibrium model is feasible, i.e., the implicit function theorem is applicable. Consider an equilibrium equation, ϒ(k,E)=k of a model where an equilibrium variable (k) is a continuous bounded function of time, real line, and the policy parameter (E) is a locally integrable function of time. The key conditions are time invariance of ϒ and the requirement that the Fourier transform of the derivative of ϒ with respect to k does not return unity. Further, in a general constant-returns-to-scale production and homogeneous life-time-utility overlapping generations model we show that the first condition is satisfied at a balanced growth equilibrium and the second condition is satisfied for “almost all” policies that give rise to such equilibria.

Original language | English |
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Pages (from-to) | 35-45 |

Number of pages | 11 |

Journal | Journal of Mathematical Economics |

Volume | 74 |

DOIs | |

State | Published - Jan 2018 |

### Bibliographical note

Publisher Copyright:© 2017 Elsevier B.V.

## Keywords

- Comparative statics
- Determinacy
- Implicit function theorem
- Overlapping generations
- Time-invariance

## ASJC Scopus subject areas

- Economics and Econometrics
- Applied Mathematics