This paper compares the welfare costs and initial dynamics of three alternative inflation stabilization policies using … and real exchange rate from appreciating on impact (MBR). Simulation results suggest that the welfare costs associated … temporary programs and for economies with low degree of currency substitution. ERB and MBR programs produce similar welfare …

This paper extends the utility-based welfare criterion developed by Rotemberg and Woodford (1997) and Woodford (2003 …) to a model with endogenous capital accumulation. The welfare criterion obtained for this model shares several features … criterion can be specified such that welfare losses depend solely on quadratic functions of the model's variables, thus …

In this paper, we investigate the welfare implications of alternative financial market structures in a two … household when sovereign bonds are the only internationally traded asset, and we compare this welfare level with that obtained … under complete asset markets. The welfare cost of incomplete markets is negligible if agents are very patient and shocks are …

model with incomplete asset markets. We investigate the possibility of welfare improving active tax policies, in particular … welfare gains (by about a third). …

This paper computes the change in welfare associated with the introduction of incentives. Specifically, we calculate by … how much the welfare gains of increased output due to incentives outweigh workers' disutility from increased effort. We … increased effort due to incentives is equal to the dollar value of a 9% rise in productivity. Welfare is measured as the output …

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 required states to increase welfare … recipient employment and participation in welfare-to-work programs. These work requirements are sometimes credited for bringing …