Bailey's measure of the welfare costs of inflation as a general-equilibrium measure

Detalhes bibliográficos
Autor(a) principal: Cysne, Rubens Penha
Data de Publicação: 2017
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
Texto Completo: http://hdl.handle.net/10438/19310
Resumo: Lucas (2000) has shown that Bailey’s formula for the welfare costs of inflation can be regarded as an approximation to the general-equilibrium measures that emerge from the Sidrauski and the shopping-time models. In this paper we show that Bailey’s measure can be exactly obtained in the Sidrauski general-equilibrium framework under the assumption of quasilinear preferences. The result, based on whether or not wealth effects are incorporated into the analysis, is also helpful in clarifying why Lucas’ measure derived from the Sidrauski model turns out to be an upper bound to Bailey’s. Two examples are used to illustrate the main conclusions.
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spelling Cysne, Rubens PenhaEscolas::EPGEFGV2017-12-08T18:46:44Z2017-12-08T18:46:44Z2017Cysne, Rubens Penha. Bailey's measure of the welfare costs of inflation as a general-equilibrium measure. Journal of Money, Credit and Banking, v. 41, n. 2–3, March–April, 2009, p. 451-59.http://hdl.handle.net/10438/19310Lucas (2000) has shown that Bailey’s formula for the welfare costs of inflation can be regarded as an approximation to the general-equilibrium measures that emerge from the Sidrauski and the shopping-time models. In this paper we show that Bailey’s measure can be exactly obtained in the Sidrauski general-equilibrium framework under the assumption of quasilinear preferences. The result, based on whether or not wealth effects are incorporated into the analysis, is also helpful in clarifying why Lucas’ measure derived from the Sidrauski model turns out to be an upper bound to Bailey’s. Two examples are used to illustrate the main conclusions.engEnsaios Econômicos;790InflationWelfarePartial equilibriumGeneral equilibriumBaileyEconomiaInflaçãoEquilíbrio econômicoBailey's measure of the welfare costs of inflation as a general-equilibrium measureinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessTEXTbailey-s-measure-of-the-welfare-costs-of-inflation-as-a-general-equilibr....pdf.txtbailey-s-measure-of-the-welfare-costs-of-inflation-as-a-general-equilibr....pdf.txtExtracted texttext/plain19334https://repositorio.fgv.br/bitstreams/4a125671-39c7-4ec2-82bb-9084dbd6984c/download0f6b0c1f4a1fa9b11a99596199ce3e58MD58LICENSElicense.txtlicense.txttext/plain; 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dc.title.eng.fl_str_mv Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
title Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
spellingShingle Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
Cysne, Rubens Penha
Inflation
Welfare
Partial equilibrium
General equilibrium
Bailey
Economia
Inflação
Equilíbrio econômico
title_short Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
title_full Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
title_fullStr Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
title_full_unstemmed Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
title_sort Bailey's measure of the welfare costs of inflation as a general-equilibrium measure
author Cysne, Rubens Penha
author_facet Cysne, Rubens Penha
author_role author
dc.contributor.unidadefgv.por.fl_str_mv Escolas::EPGE
dc.contributor.affiliation.none.fl_str_mv FGV
dc.contributor.author.fl_str_mv Cysne, Rubens Penha
dc.subject.eng.fl_str_mv Inflation
Welfare
Partial equilibrium
General equilibrium
Bailey
topic Inflation
Welfare
Partial equilibrium
General equilibrium
Bailey
Economia
Inflação
Equilíbrio econômico
dc.subject.area.por.fl_str_mv Economia
dc.subject.bibliodata.por.fl_str_mv Inflação
Equilíbrio econômico
description Lucas (2000) has shown that Bailey’s formula for the welfare costs of inflation can be regarded as an approximation to the general-equilibrium measures that emerge from the Sidrauski and the shopping-time models. In this paper we show that Bailey’s measure can be exactly obtained in the Sidrauski general-equilibrium framework under the assumption of quasilinear preferences. The result, based on whether or not wealth effects are incorporated into the analysis, is also helpful in clarifying why Lucas’ measure derived from the Sidrauski model turns out to be an upper bound to Bailey’s. Two examples are used to illustrate the main conclusions.
publishDate 2017
dc.date.accessioned.fl_str_mv 2017-12-08T18:46:44Z
dc.date.available.fl_str_mv 2017-12-08T18:46:44Z
dc.date.issued.fl_str_mv 2017
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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status_str publishedVersion
dc.identifier.citation.fl_str_mv Cysne, Rubens Penha. Bailey's measure of the welfare costs of inflation as a general-equilibrium measure. Journal of Money, Credit and Banking, v. 41, n. 2–3, March–April, 2009, p. 451-59.
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10438/19310
identifier_str_mv Cysne, Rubens Penha. Bailey's measure of the welfare costs of inflation as a general-equilibrium measure. Journal of Money, Credit and Banking, v. 41, n. 2–3, March–April, 2009, p. 451-59.
url http://hdl.handle.net/10438/19310
dc.language.iso.fl_str_mv eng
language eng
dc.relation.ispartofseries.por.fl_str_mv Ensaios Econômicos;790
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