Inflation and Welfare in an OLG Economy with a Privately Provided Public Good

In this paper we study the welfare effects of monetary policy in a simple overlapping generation economy in which agents voluntarily contribute to a public good. Inflation has two effects at equilibrium: it increases voluntary contributions and it misallocates private consumption across time. We show that the aggregate effect is welfare-improving for not too large inflation rates. Moreover, there exists an optimal inflation rate

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Year of publication:	2012
Authors:	Currarini, Sergio ; Bloise, Gaetano ; Kikidis, Nicholas
Publisher:	[S.l.] : SSRN
Subject:	Inflation \| Öffentliche Güter \| Public goods \| Theorie \| Theory \| Overlapping Generations \| Overlapping generations \| Wohlfahrtsanalyse \| Welfare analysis \| Privatisierung \| Privatization

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Extent:	1 Online-Ressource (24 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2001 erstellt
Other identifiers:	10.2139/ssrn.275129 [DOI]
Classification:	H41 - Public Goods ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014128532