. Author manuscript; available in PMC: 2016 Sep 16.

Published in final edited form as: J Econ Dyn Control. 2014 Oct 2;51:166–179. doi: 10.1016/j.jedc.2014.09.014

Table 2.

Results from the comparative dynamics analysis in section 3.5.

Comparative Dynamics Results (increase in given parameter)
Parameter	Description	Increasing Risk		Decreasing Risk
		Effect of an increase on investment in prevention	Effect of an increase on steady state stock of prevention capital	Effect of an increase on investment in prevention	Effect of an increase on steady state stock of prevention capital
JX	Value of an optimally managed ex post system	Lower investment	Lower steady state stock	Lower investment	Lower steady state stock
r	Discount rate	Less investment	Lower steady state stock	Less investment	Lower steady state stock
B	The flow of benefits the system	More investment in prevention	Higher steady state stock	Higher investment	Higher steady state stock
δ	Depreciation rate of prevention capital stock	Higher investment	Lower steady state stock	Higher investment	Lower steady state stock
c	Effectiveness of prevention	Lower investment	lower steady state stock	Lower investment	Lower steady state stock
χ	This scales the rate of approach to the steady state. A higher value approaches the steady state faster.⁶	Faster increase in prevention	Unchanged	Faster decrease in investment	Unchanged