Using Asset Prices to Measure the Cost of Business Cycles.

We propose a method to measure the welfare cost of economic fluctuations that does not require full specification of consumer preferences and instead uses asset prices. The method is based on the marginal cost of consumption fluctuations, the per unit benefit of a marginal reduction in consumption fluctuations expressed as a percentage of consumption.

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Year of publication:	2000
Authors:	Alvarez, F. ; Jermann, U.J.
Institutions:	Weiss Center for International Financial Research, Wharton School of Business
Subject:	COSTS \| PRICES \| CONSUMERS \| BUSINESS CYCLES

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Series:	Weiss Center Working Papers.
Type of publication:	Book / Working Paper
Notes:	49 pages
Classification:	D12 - Consumer Economics: Empirical Analysis ; E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005664268