Year:
2006
Autor(s):
Afonso Arinos de Mello Franco Neto; João Victor Issler; Osmani Teixeira Carvalho Guillen
Serie number: 624
Abstract:
With standard assumptions on preferences and a fully-fledged econometric model we computed the welfare costs of macroeconomic uncertainty for post-war U.S. using the BeveridgeNelson decomposition. Welfare costs are about 0.9% per-capita consumption ($175.00) and marginal welfare costs are about twice as large.