The n-dimensional Bailey–Divisia measure as a general-equilibrium measure of the welfare costs of inflation

This paper shows that in economies with several monies the Bailey–Divisia multidimensional consumers’ surplus formula may emerge as an exact general-equilibrium measure of the welfare costs of inflation, provided that preferences are quasilinear.

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Year of publication:	2011
Authors:	Cysne, Rubens Penha
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 113.2011, 2, p. 99-102
Publisher:	Elsevier
Subject:	Inflation \| Welfare \| Bailey \| Divisia \| Surplus \| Index

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Type of publication:	Article
Classification:	C0 - Mathematical and Quantitative Methods. General ; E40 - Money and Interest Rates. General ; E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General
Source:	RePEc - Research Papers in Economics

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