Hairault, Jean-Olivier; Langot, François - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2010
Gali et al. (2007) have recently shown in a quantitative way that inefficient fluctuations in the allocation of resources do not generate sizable welfare costs. In this note, we show that their evaluation underestimates the welfare costs of inefficient fluctuations and propose a biased estimate...