OxTalks is Changing
During Michaelmas Term, OxTalks will be moving to a new platform (full details are available on the Staff Gateway).
For now, continue using the current page and event submission process (freeze period dates to be advised).
If you have any questions, please contact halo@digital.ox.ac.uk
Comparative Statics with Adjustment Costs and the Le Chatelier Principle
We develop a theory of monotone comparative statics in the presence of adjustment costs. We show that comparative-statics conclusions may be drawn under the usual ordinal complementarity assumptions on the objective function, assuming almost nothing about costs: the only requirement is that non-adjustment be costless. We use this insight to provide a general treatment of the le Chatelier principle based on adjustment costs. We extend these results to a fully dynamic, forward-looking model of adjustment over time: given only minimal structure on costs, optimal adjustment follows a monotone path. We apply our results to models of investment and of sticky prices.
Date:
21 February 2023, 12:45
Venue:
Nuffield College, New Road OX1 1NF
Venue Details:
Butler Room, D Staircase or https://zoom.us/j/92241183272?pwd=ZXliWGhFL3VDdm5rSXdSbTRXN0VyQT09
Speaker:
Ludvig Sinander (University of Oxford)
Organising department:
Department of Economics
Part of:
Economic Theory Workshop
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Emma Heritage
