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The welfare cost of business cycles in an economy with nonclearing markets


Portier, Franck y Puch González, Luis Antonio (2004) The welfare cost of business cycles in an economy with nonclearing markets. [ Documentos de trabajo del Instituto Complutense de Análisis Económico (ICAE); nº 0403, 2004, ]

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In this paper we measure the welfare cost of fluctuations in a simple representative
agent economy with nonclearing markets. The market friction we consider involves
price rigidities and a voluntary exchange rationing scheme. These features are incorporated
into an otherwise standard neoclassical growth model. We show that the
frictions we introduce make the losses from fluctuations much bigger than in a frictionless

Tipo de documento:Documento de trabajo o Informe técnico
Información Adicional:

JEL classification: E32, C63, C68

Palabras clave:Cost of business cycles, Nonclearing markets, Dynamic general equilibrium
Materias:Ciencias Sociales > Economía > Econometría
Título de serie o colección:Documentos de trabajo del Instituto Complutense de Análisis Económico (ICAE)
Código ID:7717

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Última Modificación:06 Feb 2014 07:55

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