International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the efficiency of resource allocation do not generate sizable welfare costs. In their economy, which is distorted by monopolistic competition in the steady state, we show that they underestimate the welfare cost of these fluctuations by ignoring the negative effect of aggregate volatility on average consumption and leisure. As monopolistic suppliers, both firms and workers aim to preserve their expected markups; the interaction between aggregate fluctuations and price-setting behavior results in average consumption and employment levels that are lower than their counterparts in the flexible-price economy. This level effect increases the efficien...
In his famous monograph, Lucas (1987) put forth an argument that the welfare gains from reducing the...
In this paper we measure the welfare cost of fluctuations in a simple representative agent economy w...
In this Paper we present a simple, theory-based measure of the variations in aggregate economic effi...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
Gali et al. (2007) have recently shown quantitatively that fluctuations in the efficiency of resourc...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
This paper analyzes the welfare effects of business cycles when workers face uninsurable idiosyncrat...
In this paper we present a simple, theory-based measure of the variations in aggregate economic effi...
In his famous monograph, Lucas (1987) put forth an argument that the welfare gains from reducing the...
In this paper we measure the welfare cost of fluctuations in a simple representative agent economy w...
In this Paper we present a simple, theory-based measure of the variations in aggregate economic effi...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
Gali et al. (2007) have recently shown quantitatively that fluctuations in the efficiency of resourc...
International audienceGali et al. (2007) have recently shown quantitatively that fluctuations in the...
URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2010Documents de travail du ...
This paper analyzes the welfare effects of business cycles when workers face uninsurable idiosyncrat...
In this paper we present a simple, theory-based measure of the variations in aggregate economic effi...
In his famous monograph, Lucas (1987) put forth an argument that the welfare gains from reducing the...
In this paper we measure the welfare cost of fluctuations in a simple representative agent economy w...
In this Paper we present a simple, theory-based measure of the variations in aggregate economic effi...