The purpose of this paper is to focus on the rigidity model and illustrate some relationships between the typical use of the model and a version of it involving first differences in the dependent variable. These relationships will be extended to least squares estimation of rigidity models. A...

The main purpose of this paper is to analyze the welfare implications of stabilizing consumption and production and to compare it with the already-known welfare implications of stabilizing prices. Two sets of assumptions regarding supply behavior will be considered: (1) supply reacts...