Comparative Statics Analysis in Economics

As an empirical science, economics employs theoretical models to describe economic phenomena and processes. These models are then used to generate testable propositions. Comparative statics analysis facilitates the derivation of such propositions. This is a self-contained introduction to comparative statics analysis, and should be appropriate for a first-year PhD course in mathematics for economists. The demands that modern economic analysis places upon the student renders an incremental approach to learning essential. This permits students' intuition to develop as mathematical tools are employed in problem solving. In this work, students learn comparative statics by doing comparative statics in progressively more sophisticated models. Repeated application of the basic technique should allow the student to gain competence in comparative statics analysis with minimal distraction.