Some results for the comparative statics of steady states of higher-order discrete dynamic systems

Higher-order discrete dynamic systems arise naturally in many economic mode ls in which the problem at hand requires an explicit treatment of dynamics involving lags of more than one period. In studying such models, one type o f analysis that economists are often interested in is the assessment of the signs and the magnitudes of the effects of a change in the parameters of t he dynamic system on the stable steady states of the system. This paper pre sents some results for such comparative statics analysis. Brief remarks exp lain the results and illustrate their potential economic usefulness, (C) 20 00 Elsevier Science B.V. All rights reserved. JEL classification: C60 and C 61.