Theoretical and Applied Economics
No. 1 / 2015 (602), Spring
Welfare costs due to economic fluctuations according to different model setups
Romanian Academy
Abstract. The topic related to the costs in terms of welfare generated by economic fluctuations was highly debated in the macroeconomic research. Lucas opened the debate in this regard in a seminal paper in 1987 by asking what will be the gain in terms of consumption units by eliminating the economic fluctuations. Some weak assumptions raised several criticisms on the Lucas (1987) work. Reis (2009) proposed a robust approach by assuming the data generating process of consumption is defined through a persistent autoregressive approach without drift. The current paper aims at calculating the welfare cost generating by fluctuations in Romanian economy. As compared with Alupoaiei (2013), here was investigated the relationship between welfare costs and different scenarios regarding the level of consumption volatility and the risk aversion parameter. In that sense were constructed surfaces to emphasize these connections.
Contents
The credit impact on the economic growth
Predicting balance of payments crises for some emerging economies
Creativity and innovation – Sources of competitive advantage in the value chain of tourism enterprises
How to escape the middle income trap: international evidence from a binary dependent variable model
Land value dynamics with endogenous human and physical capital accumulation
Environmental Kuznets curve. Evidence from Romania
Effects of economic crisis on the distribution of earnings from Romania
An approach of social policy in terms of macro-stabilisation function
Economy recovery risks which Romanian companies has to cope with
The measurement of fiscal behavior in some European countries: Panel data perspective
Romanian municipal bond market at Bucharest Stock Exchange: further investigations
Inequality and economic growth: theoretical and operational approach
Measuring financial development in India: A PCA approach
Welfare costs due to economic fluctuations according to different model setups
The role of rating agencies in international financial market
Socioeconomic development index ranking calculations of cities with fuzzy clustering method: case of Turkey
Fiscal transparency in the European Union
Epistemic transfers in economics from social sciences
Accelerating the development of learning organizations: Shifting paradigms from current practice to human performance improvement
Transferring business intelligence and big data analysis from corporations to governments as a hybrid leading indicator
The impact of cultural and educational accumulations on entrepreneurial behaviour. Main issues encountered in theoretical approaches
Models for evaluating financial crisis – what went wrong for developed and emerging economies?
Impact of financial crisis on the decision making process for insurance consumers
Beyond the implementation of a dynamic stochastic general equilibrium model
How the legislation influenced the M&A transactions in Romania