The Correspondence Principle is the relation, which exists in certain economic models, between comparative statics of equilibria and the properties of out-of-equilibrium dynamics. The Correspondence Principle (CP) implies that one obtains unambiguous comparative statics by selecting equilibria with desirable dynamic properties. Generally, the CP determines comparative statics in models with a o...

A single mathematical theme underpins disparate physical phenomena in classical, quantum and statistical mechanical contexts. This mathematical “correspondence principle”, a kind of wave–particle duality with glorious realizations in classical and modern mathematical analysis, embodies fundamental geometrical and physical order, and yet in some sense sits on the edge of chaos. Illustrative case...

We present a new application of Samuelson’s Correspondence Principle to the analysis of comparative dynamics in stochastic rational expectations models. Our version, which we call the E-correspondence principle, applies to rational expectations equilibria that are stable under least squares and closely related learning rules. With this technique it is sometimes possible to study, without explic...