Jacobs, Kris; Pallage, Stéphane; Robe, Michel A. - Centre Interuniversitaire sur le Risque, les Politiques … - 2005
Existing estimates of the welfare cost of business cycles suggest that it is quite low and might well be minuscule. Many of these estimates are based on aggregated U.S. consumption data. Arguably, because markets are incomplete and risk-sharing is imperfect, the welfare costs computed with...