Comparing Optima: Do Simplifying Assumptions Affect Conclusions?

S-Tier
Journal: Journal of Political Economy
Year: 1994
Volume: 102
Issue: 3
Pages: 607-15

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Consider a family of maximization models in which the optimum trades off beneficial and costly effects. Then comparative statics derived under many kinds of simplifying assumptions about the benefits technology are also true for general (convex and nonconvex) technologies. For example, any comparative statics conclusion about investment by a risk-averse decisionmaker under uncertainty that holds when expected returns are described by a general linear function also holds for an arbitrary nonlinear expected return function. Copyright 1994 by University of Chicago Press.

Technical Details

RePEc Handle
repec:ucp:jpolec:v:102:y:1994:i:3:p:607-15
Journal Field
General
Author Count
1
Added to Database
2026-01-26