Uncertainty about welfare effects of consumption fluctuations

Romain Houssa

European Economic Review, 2013, vol. 59, issue C, 35-62

Abstract: This paper proposes Bayesian estimates for welfare effects of consumption fluctuations and growth. Annual data from 82 developed and developing countries indicate a large degree of uncertainty as regards point estimates. Moreover, the comparison between the welfare gain from consumption stabilization and the welfare gain from growth yields inconclusive results for many developed and developing countries. These findings suggest the need for caution in drawing policy conclusions from point estimates.

Keywords: Business cycles; Growth; Welfare; Bayesian inference (search for similar items in EconPapers)
JEL-codes: C11 E63 H50 O50 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Uncertainty about Welfare Effects of Consumption Fluctuations (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:59:y:2013:i:c:p:35-62

DOI: 10.1016/j.euroecorev.2012.12.006

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