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 …

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 …

This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare … consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and … derive analytical expressions for income mobility and welfare as a function of the various parameters of the underlying …

-term unemployed. In this paper, we use an incomplete-market model with search unemployment to evaluate the macro-economic and welfare …-run (noncyclical) unemployment rate in Germany by 1.4 percentage points. We also find that the welfare of employed households increases …, but the welfare of unemployed households decreases even with moderate degree of risk aversion. …

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 …

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

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 …

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 …

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 …