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An analytical approach to the welfare cost of business cycles and the benefit from activist monetary policy
Kiley, Michael T. - Federal Reserve Board (Board of Governors of the … - 2001
Typical dynamic general-equilibrium (DGE) models with stochastic productivity, consumers with state-separable (expected … quantities to productivity shocks unaltered from the solutions under expected utility, but can raise substantially the welfare … allocation continues to imply a volatile consumption stream in response to productivity shocks. These results highlight an …
Persistent link: https://www.econbiz.de/10005721223
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The automatic fiscal stabilizers: quietly doing their thing
Cohen, Darrel; Follette, Glenn - Federal Reserve Board (Board of Governors of the … - 1999
This paper presents theoretical and empirical analysis of automatic fiscal stabilizers, such as the income tax and unemployment insurance benefits. Using the modern theory of consumption behavior, we identify several channels--insurance effects, wealth effects and liquidity constraints- -through...
Persistent link: https://www.econbiz.de/10005393680
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A quantitative defense of stabilization policy
Cohen, Darrel - Federal Reserve Board (Board of Governors of the … - 2000
In an analysis of the value of growth and stabilization of consumption, Robert Lucas presents a stunning set of calculations implying that a permanent increase in the growth rate of consumption of only one-tenth percentage point per year is worth nearly 50 times as much to consumers as complete...
Persistent link: https://www.econbiz.de/10005394000