Rebalancing frequency and the welfare cost of inflation

Detalhes bibliográficos
Autor(a) principal: Silva, André C.
Data de Publicação: 2014
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/12341
Resumo: Cash-in-advance models usually require agents to reallocate money and bonds in fixed periods, every month or quarter, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose how often they exchange bonds for money. In the benchmark specification, the welfare cost of ten percent instead of zero inflation increases from 0.1 percent of income with fixed periods to one percent with optimal periods. The results are robust to different preferences, to different compositions of income in bonds or money, and to the introduction of capital and labor.
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spelling Rebalancing frequency and the welfare cost of inflationportfolio rebalancing frequencywelfare cost of inflationmoney demandcash-in-advance modelsmarket segmentationCash-in-advance models usually require agents to reallocate money and bonds in fixed periods, every month or quarter, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose how often they exchange bonds for money. In the benchmark specification, the welfare cost of ten percent instead of zero inflation increases from 0.1 percent of income with fixed periods to one percent with optimal periods. The results are robust to different preferences, to different compositions of income in bonds or money, and to the introduction of capital and labor.NSBERUNSilva, André C.2014-07-04T15:04:47Z2014-072014-07-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/12341enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T03:47:17Zoai:run.unl.pt:10362/12341Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:20:52.655026Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Rebalancing frequency and the welfare cost of inflation
title Rebalancing frequency and the welfare cost of inflation
spellingShingle Rebalancing frequency and the welfare cost of inflation
Silva, André C.
portfolio rebalancing frequency
welfare cost of inflation
money demand
cash-in-advance models
market segmentation
title_short Rebalancing frequency and the welfare cost of inflation
title_full Rebalancing frequency and the welfare cost of inflation
title_fullStr Rebalancing frequency and the welfare cost of inflation
title_full_unstemmed Rebalancing frequency and the welfare cost of inflation
title_sort Rebalancing frequency and the welfare cost of inflation
author Silva, André C.
author_facet Silva, André C.
author_role author
dc.contributor.none.fl_str_mv RUN
dc.contributor.author.fl_str_mv Silva, André C.
dc.subject.por.fl_str_mv portfolio rebalancing frequency
welfare cost of inflation
money demand
cash-in-advance models
market segmentation
topic portfolio rebalancing frequency
welfare cost of inflation
money demand
cash-in-advance models
market segmentation
description Cash-in-advance models usually require agents to reallocate money and bonds in fixed periods, every month or quarter, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose how often they exchange bonds for money. In the benchmark specification, the welfare cost of ten percent instead of zero inflation increases from 0.1 percent of income with fixed periods to one percent with optimal periods. The results are robust to different preferences, to different compositions of income in bonds or money, and to the introduction of capital and labor.
publishDate 2014
dc.date.none.fl_str_mv 2014-07-04T15:04:47Z
2014-07
2014-07-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/12341
url http://hdl.handle.net/10362/12341
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv NSBE
publisher.none.fl_str_mv NSBE
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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