This paper studies comparative statics in the consumer utlity maximization problem with two goods. The analysis can be global, and it allows for indivisibilities, discrete changes, and non-binding ...

Defining Comparative Statics Comparative Statics, tracking an optimal or equilibrium value as an exogenous variable changes, ceteris paribus, is the heart of economic analysis. By building models and ...

We study the comparative statics implications of mean-variance preferences for optimal portfolios. Specifically, we show that all risk-averse mean-variance investors raise their investment in a risky ...