We provide a non-parametric characterization of how welfare responds to changes in budget and production possibility sets when preferences are non-homothetic or subject to shocks, in both partial and general equilibrium. We generalize Hulten's theorem, which is the basis for constructing...

This paper reviews a framework for studying the aggregation and propagation of microeconomic shocks in general equilibrium. We discuss the determinants of aggregate measures of real economic activity, like real GDP, real domestic absorption, and aggregate productivity in both efficient and...

We show how to recover the money-metric utility function, which converts income at one point in time into equivalent income at another point in time, using repeated cross-sectional household data. Our procedure allows unrestricted preferences, but requires that households' preferences be the...