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S16 ImplicitFunction
S16 ImplicitFunction
S16 ImplicitFunction
Session 16:
(1) Implicit function theorem
(2) Comparative statics
tractions
I
mi :
"relation"
2 > e2 y2 1
F(e,y) y2
=
= 0 -
x + - 1 = 0 -
+
y
Explicit function (42 = 1 -
x2)
al
N1
= x
-
- y x2 -
=
-
= -
· x
In
W
1
-
- 1
-N 2x)
I= 1 x2
= i
-
=
-
0
- - -
da
-
1
d E =-
I
At point A = -
> 0
Ac" (t) dx
·
W dy
' (-) dx
=
A =
.
dy =
y
+
Implicit function :
Ed
mean
dy = -
Focdx Fydy 0 -
=
Flee, 3)
+
= 0
y f(x) dy f(x)dx
= Fee where
F is the
=
= - --
-
Fy implicit function
-
F(x, 3)
=
x +
y2 -
1 =- -
e 2x x
5d
-
-
--
Fy .
and , furthermore ,
dfdx=-FXF
I - IRM "Explicit function" & f() =
,
filR"->RM
iRn
2 d Df()d
=
- man
IR* such
*
Implicit Function !
F: 1Rm+ -> that
nee
F(2 , ) =
& mx 1
nx1 mx1
e
(m +
n) x 1
Dentral :
DF( , 2) -
(9) =
0 -
[DED).
man mxM
=
0
! If IDFylfO ,
then filR" -
-
exists
->
DFyd = DE die
de
-
e
-
dY =
DE DE
mxM mx1 mx 1 ne
DfC2)
Economic modell: F(2 , 2) =
0 = model
a re
x
-
:
exogenous
: endogenous
f(x) solution
y
= -
D
E25 Demand
nur
:
Say :
I SIP, A) Sp>0 SA ? O
=
, ,
Emilibrium
:
Q PP 05
= =
e =
(Y Al"
,
- > exo
I =
(P, P)" -
endo
Q D(P, 7) Q-D(PY) 0
(1)
Enteractions
=
=
-> :
(2) Q S(P A)
=
, -> Q - S(P , A) 0 = ·
q =
F(Y , A)
e
P =
Fz(Y A) ,
F(x1]) =
0
*
Differential system : dP-(DpdP+DydY) =
0
(Linear) 0
dP-(SpdP+SAdA)
=
dP-DpdP =
DydY
Separate
3
* exo
dP-SpdP- SAdA
from endo
Matrix form
II ][]= [?] [
* :
d DEx de
DFy
= -
*
DD-Sp <O
IDE1fO -> 1! B) =-sp+Dp= (4) FO
IDE1=0
-
un
Since
"Jacobran" of the system =>
function felo) ,
fels exist
* Solve the diff system /"Computethe demateee
/Pers
TB) cost =
I
SpDY
[a]=
-
Sp-DP
A
Do
-
Sp-DP
d =
-
DFy-1DF d
d =
Df(x) de
G fe(Y
=
, A) - da =
2fzdY +EdA
24 2A
[DF] 1 [DEJ12
(t) (t)
dY> 0
Dy dO>0
do I dy ->
dA =
0 ->
-
Sp-Dip
CeterisParibus -(t)
(conditions Hy) dY ->dP>0
-> d =
Sp-P (H)
P S
- -
↑ ⑧
↳ Di
D
->
①
dY =
0
dO= dA =
-
Isn' dA >0
(t)
dA>0 Sp-Dp
(H)
dP = F2 dA Spt) d
-
= -
- < 0
2A Sp-PP
,+
S
P
S'
↓
8
↓ I &
D
->
①