Kalaba, Robert E.; Tesfatsion, Leigh

Nonlinear Analysis Vol. 5 (1981): 821-833.

This article develops a complete system of ordinary differential equations for tracking solution branches x(b) of a parameterized system of nonlinear equations F(x,b) = 0 along arbitrary user-designated paths for the parameter vector b. The complete system is obtained by augmenting the usual fundamental equation of comparative static analysis with ordinary differential equations for the Jacobian inverse. The feasibility and accuracy of the method are illustrated by several numerical examples. Annotated pointers to related work can be accessed here: http://www.econ.iastate.edu/tesfatsi/nasahome.htm

JEL Classification: C6

Keywords: Parameterized nonlinear equations, solution tracking, ordinary differential equations