This paper studies the welfare effects of monetary and fiscal policy rules, in a dynamic general equilibrium model with …) quadratic approximation method is used to solve the model, and to compute household welfare. The paper determines the response … coefficients of the policy rules that maximize household welfare. Optimized monetary policy has a strong anti-inflation stance …

percent leads to a rise of 0.39 percent in aggregate capital. Moreover, the average welfare costs of inflation are much lower … inflation would induce a 30 percent higher decrease in welfare in the complete market economy compared to our framework with …

This paper is my ongoing research on welfare analysis using real business cycle approach. In this paper, I have modeled … rates and computes its effects on the welfare of the households. By altering the rate of tax progression, it is possible to … see and compare the effects of various tax structures on the welfare of the economy. My preliminary comparison of …

Using a sticky price-wage model with capital accumulation and adjustment costs, this paper analyses the welfare effects … of non-fundamental asset price and investment fluctuations for the representative household. The welfare effect depends … positive investment and demand effects move the economy in the direction of the efficient output and can therefore be welfare …

on the well-being of an individual we need to take into account that this policy affects her welfare in other ways than …

This paper studies the effects of social insurance policies on the level and distribution of welfare and resources in a … general equilibrium model of a closed economy with a continuum of agents and moral hazard. In order to simulate the welfare … different guaranteed minimum consumption levels (welfare-state regimes). First, I describe a general way how to introduce …

account for the average welfare costs of business cycle fluctuations identified in Gali, Gertler, and Lopez- Salido (2003 …)? Second, what is the role of contracting schemes for the welfare costs of business cycle fluctuations? We compute a quadratic … approximation to agents expected lifetime utility and evaluate welfare for different modeling schemes of nominal rigidities that all …