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- Title
QUALITATIVE ANALYSIS, DETERMINACY AND STABILITY.
- Authors
Lunghini, Giorgio
- Abstract
Recent mathematical research has led to the formulation of many theorems of great interest to the economist. They permit him to judge a priori if it is possible to derive meaningful propositions of comparative statics from the system of relationships that characterize a given static model; it is not necessary for him to derive the reduced form nor to render explicit the dynamic model. The purpose of the paper is: to clarify the premises and the methodological implications of such research; to enlarge on the most significant results from the point of view of the construction of economic models; to demonstrate how the two classes of qualitatively stable models combine among themselves and to demonstrate how their intersection contains models of a causal type. The theory of qualitatively determinate systems permits the substitution (as cost of the qualitative determination) of a certain loss (though minimum and calculated) in terms of the complexity of the model for a certain loss in terms of empirical relevance. This loss may be measured by the number of the non-zero elements in the augmented matrix of the system of equations that characterize the model.
- Subjects
QUALITATIVE research; MATHEMATICAL models; ECONOMIC models; MATRICES (Mathematics); STATISTICS; ECONOMIC statistics
- Publication
Quality & Quantity, 1970, Vol 4, Issue 2, p299
- ISSN
0033-5177
- Publication type
Article
- DOI
10.1007/BF00199567