The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Comparative Statics

  • John Nachbar
Reference work entry


Comparative statics in competitive general equilibrium (GE) environments provide insight into the operation of GE models and a means to confront GE models with data. This article focuses on a canonical comparative statics prediction: in an exchange economy, aggregate endowment changes are negatively related to equilibrium price changes. In particular, an increase in the aggregate endowment of a commodity lowers its equilibrium price.


Aggregate excess demand Asset pricing Comparative statics Competitive general equilibrium Debreu–Mantel–Sonnenschein theorem Demand shocks Endowment changes General equilibrium Gross substitutes Hicks, J. Partial equilibrium Production economies Rybcyznski theorem Stolper–Samuelson theorem Supply shocks Weak axiom of revealed preference 

JEL Classifications

This is a preview of subscription content, log in to check access.


  1. Becker, G. 1962. Irrational behavior and economic theory. Journal of Political Economy 70: 1–13.CrossRefGoogle Scholar
  2. Brown, D., and R. Matzkin. 1996. Testable restrictions on the equilibrium manifold. Econometrica 64: 1249–1262.CrossRefGoogle Scholar
  3. Chiappori, P., I. Ekelund, F. Kübler, and H. Polemarchakis. 2004. Testable implications of general equilibrium theory: A differentiable approach. Journal of Mathematical Economics 40: 105–119.CrossRefGoogle Scholar
  4. Echenique, F., and A. Manelli. 2005. Comparative statics, English auctions, and the Stolper–Samuelson theorem. Mimeo. Tempe: Arizona State University.Google Scholar
  5. Grandmont, J. 1992. Transformations of the commodity space, behavioral heterogeneity and the aggregation problem. Journal of Economic Theory 57: 1–35.CrossRefGoogle Scholar
  6. Hicks, J. 1939. Value and capital. Oxford: Clarendon Press.Google Scholar
  7. Hildenbrand, W. 1983. On the law of demand. Econometrica 51: 997–1018.CrossRefGoogle Scholar
  8. Kehoe, T. 1987. Comparative statics. In The new Palgrave: A dictionary of economics, ed. J. Eatwell, M. Milgate, and P. Newman, vol. 1. Basingstoke: Palgrave.Google Scholar
  9. Kübler, F. 2003. Observable restrictions of general equilibrium with financial markets. Journal of Economic Theory 110: 137–153.CrossRefGoogle Scholar
  10. Nachbar, J. 2002. General equilibrium comparative statics. Econometrica 79: 2065–2074.CrossRefGoogle Scholar
  11. Nachbar, J. 2004. General equilibrium comparative statics: The discrete case with production. Journal of Mathematical Economics 40: 153–163.CrossRefGoogle Scholar
  12. Quah, J. 1997. The law of demand when income is price dependent. Econometrica 65: 1421–1442.CrossRefGoogle Scholar
  13. Quah, J. 2003. Market demand and comparative statics when goods are normal. Journal of Mathematical Economics 39: 317–333.CrossRefGoogle Scholar
  14. Snyder, S. 1999. Testable restrictions of Pareto optimal public good provision. Journal of Public Economics 71: 97–119.CrossRefGoogle Scholar
  15. Williams, S. 2002. Equations on the derivatives of an initial endowment-competitive equilibrium mapping for an exchange economy. Mimeo. Champaign-Urbana: University of Illinois.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • John Nachbar
    • 1
  1. 1.