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 …

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 …

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 …

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 …

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 …

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 …

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 …

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