Teaching Comparative Statics and Dynamics Analyzes Within an Intertemporal Optimization Framework

This paper presents an in - depth anatomy on the comparative statics and dynamics analyzes within an intertemporal optimization framework. Readers may find it useful supplement to teaching and learning graduate production theory. First, we delineate three of the drawbacks in the phase diagram analyzes presented in Kamien and Schwartz (1991). Second, a simple framework analogue to comparative statics within the dynamic setting is proposed to give a qualitative characterization of the long-run equilibrium. Moreover, we pointed out that the framework for comparative dynamics in Kamien and Schwartz (1991) is designed only for the comparison of disequilibrium - to - equilibrium paths; the comparative analyzes presented in this paper extend the discussion to the transitional dynamics from the pre-change equilibrium to the post - change equilibrium