Portier, Franck and Puch, Luis A. (2005) It’s a small small welfare cost of fluctuations. [Working Paper or Technical Report]
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Abstract
Lucas [1987] has shown that in a representative agent framework, the potential welfare gain from stabilizing consumption around its mean is small. We provide an example and some insight for why Lucas’ measure is an upper bound of the welfare cost of fluctuations in walrasian economies.
| Item Type: | Working Paper or Technical Report |
|---|---|
| Additional Information: | JEL code: E32, C63, C68 |
| Uncontrolled Keywords: | Cost of Business Cycles, Dynamic General Equilibrium |
| Subjects: | Social sciences > Economics > Econometrics |
| Series Name: | UCM. Instituto Complutense de Análisis Económico. Documentos de trabajo |
| Volume: | 2005 |
| Number: | 0513 |
| ID Code: | 7908 |
| Deposited On: | 20 May 2008 |
| Last Modified: | 08 Jul 2008 15:57 |
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