The welfare cost of business cycles in an economy with nonclearing markets
In this paper we measure the welfare cost of fluctuations in a simple representative agent economy with nonclearing markets. The market friction we consider involves price rigidities and a voluntary exchange rationing scheme. These features are incorporated into an otherwise standard neoclassical gr...
| Autores: | , |
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| Formato: | informe técnico |
| Fecha de publicación: | 2004 |
| País: | España |
| Recursos: | Universidad Complutense de Madrid (UCM) |
| Repositorio: | Docta Complutense |
| Idioma: | inglés |
| OAI Identifier: | oai:docta.ucm.es:20.500.14352/56605 |
| Acesso em linha: | https://hdl.handle.net/20.500.14352/56605 |
| Access Level: | acceso abierto |
| Palavra-chave: | E32 C63 C68 Cost of business cycles Nonclearing markets Dynamic general equilibrium. Econometría (Economía) 5302 Econometría |
| Resumo: | In this paper we measure the welfare cost of fluctuations in a simple representative agent economy with nonclearing markets. The market friction we consider involves price rigidities and a voluntary exchange rationing scheme. These features are incorporated into an otherwise standard neoclassical growth model. We show that the frictions we introduce make the losses from fluctuations much bigger than in a frictionless environment. |
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