tag:blogger.com,1999:blog-1740670447258719504.post3181269266556182320..comments2024-03-27T03:00:27.024-04:00Comments on Facts & other stubborn things: A brief note on dyanamic vs. static analysisEvanhttp://www.blogger.com/profile/12259004160963531720noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1740670447258719504.post-21148203769243038872012-06-27T09:04:19.300-04:002012-06-27T09:04:19.300-04:00The problem with much dynamic analysis is that peo...The problem with much dynamic analysis is that people assume that it subsumes static analysis as a special case, but they don't check. They also tend to assume only one dynamic effect is taking place.Currenthttps://www.blogger.com/profile/08645195276844244481noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-79213718541573686492012-06-27T06:35:50.516-04:002012-06-27T06:35:50.516-04:00Well maybe I'm explaining myself poorly becaus...Well maybe I'm explaining myself poorly because I certainly agree with the last sentence.<br /><br />Yes, if you have a dynamic model which generates the same static model in the steady state, the only reason not to go with the dynamic model is parsimony, I agree.<br /><br />But if you are modeling two different processes the fact that one model presents a dynamic picture and one a static picture does not inherently give the dynamic model an advantage. It all depends on what is most important to talk about. The nature of the process you're modeling is the very first thing to consider.Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-45583576615894428422012-06-27T00:41:03.589-04:002012-06-27T00:41:03.589-04:00I do not think you are right here. The static appr...I do not think you are right here. The static approach is necessarily less robust.<br />The results of a static model are going to be the same as a dynamic one only if the modelled process converges to some stable state. Therefore, by omitting dynamic interactions there could be mistaken things to say about economy, which - in real world - exists in historical time.Roman P.https://www.blogger.com/profile/17384153967221979673noreply@blogger.com