Comparative Statics With Adjustment Costs and the Le Chatelier Principle

• 成果类型: Article
• 署名作者: Dekel, Eddie; Quah, John K. -H.; Sinander, Ludvig
• 署名单位: Northwestern University; Tel Aviv University; National University of Singapore; University of Oxford; University of Oxford
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA22841
• 发表日期: 2025
• 页码: 661-694
• 关键词: menu costs; lumpy investment; business cycles; labor demand; consumption; distributions; elasticities; micro; MODEL

摘要

We develop a theory of monotone comparative statics for models with adjustment costs. We show that comparative-statics conclusions may be drawn under the usual ordinal complementarity assumptions on the objective function, assuming very little about costs: only a mild monotonicity condition is required. We use this insight to prove a general Le Chatelier principle: under the ordinal complementarity assumptions, if short-run adjustment is subject to a monotone cost, then the long-run response to a shock is greater than the short-run response. We extend these results to a fully dynamic model of adjustment over time: the Le Chatelier principle remains valid, and under slightly stronger assumptions, optimal adjustment follows a monotone path. We apply our results to models of saving, production, pricing, labor supply, and investment.