Damjanovic, Tatiana; Damjanovic, Vladislav; Nolan, Charles - Department of Economics, Adam Smith Business School - 2011
The unconditional expectation of social welfare is often used to assess alternative macroeconomic policy rules in … distorted. Thus, the measure of policy performance is a linear combination of second moments of economic variables which is … relatively easy to compute numerically, and can be used to rank alternative policy rules. The approach is applied to a simple …