Kiley Michael T. - In: The B.E. Journal of Macroeconomics 3 (2003) 1, pp. 1-26
A closed-form solution for quantity and asset-price movements in a dynamic general equilibrium model with non-state-separable preferences shows that the welfare cost of fluctuations and the equity premium can be large in such a model. But a large welfare loss from cycles does not imply a large...