It's a Small Small Welfare Cost of Fluctuations

Franck Portier () and Luis Puch

No 2005-26, Working Papers from FEDEA

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.

New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://documentos.fedea.net/pubs/dt/2005/dt-2005-26.pdf (application/pdf)

Related works:
Working Paper: It’s a Small Small Welfare Cost of Fluctuations (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fda:fdaddt:2005-26

Access Statistics for this paper

More papers in Working Papers from FEDEA
Bibliographic data for series maintained by Carmen Arias ().