In this paper we present a simple, theory-based measure of the variations in aggregate economic efficiency associated … those derived by Lucas (1987). It also suggests that the major postwar recessions involved substantial efficiency costs …

In this paper we present a simple, theory-based measure of the variations in aggregate economic efficiency associated … those derived by Lucas (1987). It also suggests that the major postwar recessions involved substantial efficiency costs …

In this paper we present a simple theory-based measure of the variations in aggregate economic efficiency: the gap … interpretation. We then show, that, with some auxilliary assumptions our gap variable may be used to measure the efficiency costs of … equilibrium is distorted, the gross efficiency losses from recessions and gains from booms may be large. Indeed, we find that the …

Efficiency comparison of ad valorem and unit taxes has been traditionally based on consumer welfare. However, if the … the implications on aggregate productivity as well. This paper makes an efficiency comparison of ad valorem and unit taxes … by allowing the distribution of firms to respond to changes in policy. First, I make an efficiency comparison in a model …