| Summary: | Complex economic problems often lack the structure for the application of standard comparative statics techniques. Addressing this difficulty, Generalized Monotonicity Analysis (GMA) generates parameter directions along which solutions, or functions thereof, increase. By providing criteria for the problem structure that guarantee monotone solutions, GMA helps reparameterize the problem accordingly. GMA generates all monotonicity relations between solutions and parameters, subject to the available information. Several applications are discussed, including constrained optimization, aggregation, quantitative monotonicity analysis and robust inference, non-supermodular games, and monotone comparative dynamics. |
