An analytical solution to the lab-equipment growth model (Rivera-Batiz and Romer,1991) with an exogenous imitation rate is presented and applied to study the policy tradeoff between weaker levels of intellectual property rights (IPR) protection yielding more consumption today, and stronger...

We suggest the use of a particular Divisia index for measuring welfare losses due to interest rate wedges and inflation. Compared to the existing options in the literature: i) when the demands for the monetary assets are known, closed-form solutions for the welfare measures can be obtained at a...

This note provides necessary and sufficient conditions for some specific multi-dimensional consumer's surplus welfare measures to be well posed (path in dependent). We motivate the problem by investigating partial equilibrium measures of the welfare costs of inflation. The results can also be...

This paper explores the use of an intertemporal job-search model in the investigation of within-cohort and between-cohort income inequality, the latter being generated by the heterogeneity of time preferences among cohorts of homogenous workers and the former by the cross-sectional turnover in...

Portuguese Abstract: Este artigo atualiza, até 2003, a série 1947-1992 de imposto inflacionário, transferências inflacionárias para os bancos comerciais e transferência inflacionárias totais, anteriormente publicada em Cysne (1994) e Simonsen e Cysne (1995)

This work adds to Lucas (2000) by providing analytical solutions to two problems that are solved only numerically by the author. The first part uses a theorem in control theory (Arrow's sufficiency theorem) to provide sufficiency conditions to characterize the optimum in a shopping-time problem...

This paper investigates the income inequality generated by a job search process when different cohorts of homogeneous workers are allowed to have different degrees of impatience. Using the fact the average wage under the invariant Markovian distribution is a decreasing function of the time...

This work presents closed-form solutions to Lucas's (2000) general equilibrium expression for the welfare costs of inflation, as well as to the difference between the general-equilibrium measure and Bailey's (1956) partial-equilibrium measure. In Lucas's original work only numerical solutions...

In this paper I devise a new channel by means of which the (empirically documented) positive correlation between inflation and income inequality can be understood. Available empirical evidence reveals that inflation increases wage dispersion. For this reason, the higher the inflation rate, the...

Lawrance (1991) has shown, through the estimation of consumption Euler equations, that subjective rates of impatience (time preference) in the U.S. are three to five percentage points higher for house holds with lower average labor incomes than for those with higher labor income. From a...