The term static, comparative static and dynamic is frequently appear in economic analysis. It is the fundamental discipline that economist must have in advance before writting or reading any paper in this field.
What is mean by static, comparative static and dynamic study?
The word static originate from the field of physic. It is used to denote some kind of movement in which speed is constantly maintained. Alike, in economic static mean the studies focus only on particular period of time. It is similar to taking a photo when you press the button for a shot then the photo is just at a particular point of time. In economic most paper is a static analysis, for instance, we say the market is in equilibrium when demand and supply equate one another, which is graphically represent by the intersection point of demand and supply curve. This is a static analysis since…
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