In this paper we use a general equilibrium model with heterogeneous agents to assess the macroeconomic and welfare …-crisis level, postponing debt stabilization for two decades would entail a permanent output loss of about 17 percent and a welfare … loss of almost 7 percent of lifetime consumption. Moreover, the long-run welfare gains from the adjustment would more than …

limited. We develop a simple welfare-based measure that captures how far countries are from the ideal of perfect risk sharing …

and other aggregates, and derive a second order approximation to welfare. Numerical calibrations show broad CPI targeting … to be welfare-superior to alternative policy rules once the variance of food price shocks is sufficiently large as in …

welfare within an overlapping generations model. More precise information about idiosyncratic production shocks has ambiguous … effects on technological progress and welfare, which depend critically on the risk sharing capacity of the economy's financial … allocation and creates a negative uncertainty-related welfare effect, at the same time as it accelerates technological progress …

matches the second moments of key variables well. Welfare analysis suggests that dollarization is preferable to alternative … regimes because it removes currency premium volatility. However, a currency board can match dollarization on welfare grounds …

paper introduces the concept of the dynastic general equilibrium value of life to measure welfare gains from the increase in … life expectancy. A calibration study finds sizable welfare gains, but these gains hardly mitigate the large inequality …

reduces domestic welfare in the short run because the temporary gains from higher productivity do not compensate domestic … productivity-enhancing public infrastructures and utility-enhancing public consumption. From the modeling point of view, the paper … increase, while foreign residents suffer short-run welfare losses but benefit from welfare gains in the long run. This analysis …