Showing 1 - 10 of 14,349
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 …
Persistent link: https://www.econbiz.de/10009654159
limited. We develop a simple welfare-based measure that captures how far countries are from the ideal of perfect risk sharing …
Persistent link: https://www.econbiz.de/10008559272
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 …
Persistent link: https://www.econbiz.de/10008560422
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 …
Persistent link: https://www.econbiz.de/10005825975
reduces domestic welfare in the short run because the temporary gains from higher productivity do not compensate domestic … increase, while foreign residents suffer short-run welfare losses but benefit from welfare gains in the long run. This analysis …
Persistent link: https://www.econbiz.de/10005769025
The paper presents numerical simulations of various fiscal rules for oil-producing countries. Welfare implications are … sensitive to the choice of the social welfare function, initial conditions, and non-oil growth prospects. The distribution of …
Persistent link: https://www.econbiz.de/10008528606
Incorporating intermediate inputs into a small-union general-equilibrium model, this paper first develops the welfare … viability of Free Trade Agreements (FTAs). Two interesting outcomes are derived. First, a welfare reducing FTA that was rejected … in the absence of the ROO becomes feasible in the presence of these rules. Second, a welfare improving FTA that was …
Persistent link: https://www.econbiz.de/10005605069
In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … index in markets with financial frictions. We find that, in the presence of financial frictions, a welfare …
Persistent link: https://www.econbiz.de/10008671286
The authors study the implications of fiscal policy behaviour for sovereign risk in a framework that determines a country's fiscal limit, the point at which, for economic or political reasons, taxes and spending can no longer adjust to stabilize debt. A real business cycle model maps the...
Persistent link: https://www.econbiz.de/10009783106
Immigration policy can have important net fiscal effects that vary by immigrants’ skill level. But mainstream methods to estimate these effects are problematic. Methods based on cash-flow accounting offer precision at the cost of bias; methods based on general equilibrium modeling address bias...
Persistent link: https://www.econbiz.de/10012799764