Paustian, Matthias - Econometric Society - 2004
and asymmetric information in the credit market. Rules are compared in a utility based welfare metric, the effects of the … more persistent. For the baseline calibration, the welfare costs of price stickiness are found to be less than 0.04 per … cent of steady state consumption. However, wage stickiness can induce welfare costs of up to 0.85 per cent of steady state …