Comparative statics

Comparative Statics is a term used in economics, specifically the microeconomics. It refers to the comparison of several macroeconomic equilibrium states. Here usually are a start and faced a target state ( hypothetical condition ), for example in the introduction of a tax, the effect could be projected on supply and demand due to the price increase.

Only the two static equilibrium states are compared with this, since a dynamic modeling of the transition from A to B would be very complex. In the dynamic analysis, the road to the new equilibrium state would additionally included in the analysis.

Very often used in preference identification phase and the benefits of demand preferences of this instrument.