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RECURSIVE PREFERENCE, MOOD FLUCTUATION AND WELFARE COST OF REDUCED GROWTH

机译:递减的偏好,情绪波动和福利的降低

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摘要

This paper studies the mood fluctuation of a typical consumer with recursive preference and the welfare cost of reduced growth and business cycle. We estimate the welfare cost using discrete recursive function as well as conduct simulation in order to compare our results with other existing research findings. Our findings are in line with traditional literature whereby the welfare cost of reduced growth is larger than that of business cycle; but our results show that these past measures understate the welfare cost of reduced growth and business cycle.
机译:本文研究了具有递归偏好的典型消费者的情绪波动以及减少增长和商业周期的福利成本。我们使用离散递归函数以及进行模拟来估算福利成本,以便将我们的结果与其他现有研究结果进行比较。我们的发现与传统文献相符,传统文献中,增长减慢的福利成本大于商业周期的福利成本。但是我们的结果表明,这些过去的措施低估了增长减少和商业周期降低的福利成本。

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