Epaulard, Anne; Pommeret, Aude - In: Review of Economic Dynamics 6 (2003) 3, pp. 672-684
This paper proposes a measure of the welfare cost of volatility derived from a stochastic endogenous growth model extended to the case of a recursive utility function which disentangles risk aversion from intertemporal elasticity of substitution. The measure of the welfare cost of volatility...
