This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
The cost of business cycles and the benefits of stabilization Author info | Abstract | Publisher info | Download info | Related research | Statistics Gadi Barlevy
Additional information is available for the following
registered author(s):
This article reviews the social cost of U.S. postwar business cycle fluctuations, first calculated by Lucas (1987). Recent work suggests this cost is considerably larger than suggested by Lucas. Despite this, the author argues that it is not obvious that policymakers should have pursued a more aggressive stabilization policy over the postwar period. Still, because volatility is costly, stable growth remains a desirable goal.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives .
Volume (Year): (2005)
Issue (Month): Q I ()
Pages: 32-49
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Handle: RePEc:fip:fedhep:y:2005:i:qi:p:32-49:n:v.29no.1Contact details of provider: Postal: P.O. Box 834, 230 South LaSalle Street, Chicago, Illinois 60690-0834 Phone: 312/322-5111 Fax: 312/322-5515 Email: Web page: http://www.chicagofed.org/ More information through EDIRC
Order Information: Email: Web: http://www.frbchi.org/pubs-speech/publications/print_order_script.html
For technical questions regarding this item, or to correct its listing, contact: (Diane Rosenberger).
Keywords: Business cycles Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: John Y. Campbell & John H. Cochrane, 1994.
"By Force of Habit: A Consumption-Based Explanation of Aggregate Stock Market Behavior ,"
CRSP working papers
412, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
[Downloadable!]
Other versions: Jim Dolmas, 1998.
"Risk Preferences and the Welfare Cost of Business Cycles ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 1(3), pages 646-676, July.
[Downloadable!] (restricted)
Shleifer, Andrei, 1986.
"Implementation Cycles ,"
Journal of Political Economy ,
University of Chicago Press, vol. 94(6), pages 1163-90, December.
[Downloadable!] (restricted)
Frank Portier & Luis A. Puch, 2004.
"The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets ,"
Documentos del Instituto Complutense de Análisis Económico
0403, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
[Downloadable!]
Other versions:
Luis A. Puch & Franck Portier, 2004.
"The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets ,"
2004 Meeting Papers
570, Society for Economic Dynamics.
[Downloadable!] Franck Portier & Luis A. Puch, .
"The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets ,"
Working Papers
2005-18, FEDEA.
[Downloadable!] Portier, Franck & Puch, Luis, 2004.
"The Welfare Cost of Business Cycles in an Economy with Non-Clearing Markets ,"
CEPR Discussion Papers
4799, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Franck Portier & Luis Puch, 2007.
"The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets ,"
Topics in Macroeconomics ,
Berkeley Electronic Press, vol. 6(3), pages 1151-1151.
[Downloadable!] (restricted) Anne Epaulard & Aude Pommeret, 2003.
"Recursive Utility, Endogenous Growth, and the Welfare Cost of Volatility ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 6(3), pages 672-684, July.
[Downloadable!] (restricted)
Other versions: Galí, Jordi & Gertler, Mark & Lopez-Salido, Jose David, 2002.
"Markups, Gaps and the Welfare Costs of Business Fluctuations ,"
CEPR Discussion Papers
3212, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Galí, Jordi & Gertler, Mark & Lopez-Salido, Jose David, 2003.
"Mark-ups, Gaps and the Welfare Costs of Business Fluctuations ,"
CEPR Discussion Papers
4134, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Jordi Galí & Mark Gertler & J. David López-Salido, 2005.
"Markups, Gaps, and the Welfare Costs of Business Fluctuations ,"
Economics Working Papers
836, Department of Economics and Business, Universitat Pompeu Fabra.
[Downloadable!] Jordi Gali & Mark Gertler & J. David Lopez-Salido, 2002.
"Markups, Gaps, and the Welfare Costs of Business Fluctuations ,"
NBER Working Papers
8850, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Jordi Galí & Mark Gertler & J. David López-Salido, 2007.
"Markups, Gaps, and the Welfare Costs of Business Fluctuations ,"
The Review of Economics and Statistics ,
MIT Press, vol. 89(1), pages 44-59, November.
[Downloadable!] (restricted) repec:fth:harver:1418 is not listed on IDEAS
TallariniJr., Thomas D., 2000.
"Risk-sensitive real business cycles ,"
Journal of Monetary Economics ,
Elsevier, vol. 45(3), pages 507-532, June.
[Downloadable!] (restricted)
Other versions: Wolfers, Justin, 2003.
"Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-Being ,"
International Finance ,
Blackwell Publishing, vol. 6(1), pages 1-26, Spring.
[Downloadable!] (restricted)
Other versions: J. Bradford De Long & Lawrence H. Summers, .
"How Does Macroeconomic Policy Matter? ,"
J. Bradford De Long's Working Papers
_130, University of California at Berkeley, Economics Department.
[Downloadable!]
Turnovsky, Stephen J. & Bianconi, Marcelo, 2005.
"Welfare Gains From Stabilization In A Stochastically Growing Economy With Idiosyncratic Shocks And Flexible Labor Supply ,"
Macroeconomic Dynamics ,
Cambridge University Press, vol. 9(03), pages 321-357, July.
[Downloadable!]
Fernando Alvarez & Urban J. Jermann, 2000.
"Using Asset Prices to Measure the Cost of Business Cycles ,"
NBER Working Papers
7978, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Alvarez, F. & Jermann, U.J., 2000.
"Using Asset Prices to Measure the Cost of Business Cycles ,"
Weiss Center Working Papers
00-1, Wharton School - Weiss Center for International Financial Research.
Fernando Alvarez and Urban J. Jermann, 2004.
"Using Asset Prices to Measure the Cost of Business Cycles ,"
Journal of Political Economy ,
University of Chicago Press, vol. 112(6), pages 1223-1256, December.
Janet L. Yellen, 2004.
"Stabilization policy: a reconsideration ,"
Speech ,
Federal Reserve Bank of San Francisco, issue Jul 1.
[Downloadable!]
Epstein, Larry G & Zin, Stanley E, 1991.
"Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: An Empirical Analysis ,"
Journal of Political Economy ,
University of Chicago Press, vol. 99(2), pages 263-86, April.
[Downloadable!] (restricted)
Andrew Atkeson & Christopher Phelan, 1994.
"Reconsidering the Costs of Business Cycles with Incomplete Markets ,"
NBER Working Papers
4719, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Tom Krebs, 2003.
"Growth and Welfare Effects of Business Cycles in Economies with Idiosyncratic Human Capital Risk ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 6(4), pages 846-868, October.
[Downloadable!] (restricted)
Boyan Jovanovic, 2004.
"Asymmetric Cycles ,"
NBER Working Papers
10573, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Obstfeld, Maurice, 1994.
"Evaluating risky consumption paths: The role of intertemporal substitutability ,"
European Economic Review ,
Elsevier, vol. 38(7), pages 1471-1486, August.
[Downloadable!] (restricted)
Other versions: Imrohoruglu, Ayse, 1989.
"Cost of Business Cycles with Indivisibilities and Liquidity Constraints ,"
Journal of Political Economy ,
University of Chicago Press, vol. 97(6), pages 1364-83, December.
[Downloadable!] (restricted)
Robert E. Lucas Jr., 2003.
"Macroeconomic Priorities ,"
American Economic Review ,
American Economic Association, vol. 93(1), pages 1-14, March.
[Downloadable!] (restricted)
Storesletten, Kjetil & Telmer, Chris I. & Yaron, Amir, 2001.
"The welfare cost of business cycles revisited: Finite lives and cyclical variation in idiosyncratic risk ,"
European Economic Review ,
Elsevier, vol. 45(7), pages 1311-1339.
[Downloadable!] (restricted)
Other versions: Satyajit Chatterjee & Dean Corbae, 2000.
"On the welfare gains of reducing the likelihood of economic crises ,"
Working Paper
0015, Federal Reserve Bank of Cleveland.
[Downloadable!]
Other versions: Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003.
"The Macroeconomics of Happiness ,"
The Review of Economics and Statistics ,
MIT Press, vol. 85(4), pages 809-827, 09.
[Downloadable!] (restricted)
Other versions:
Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001.
"The Macroeconomics of Happiness ,"
The Warwick Economics Research Paper Series (TWERPS)
615, University of Warwick, Department of Economics.
[Downloadable!] Di Tella, R. & MacCulloch, R.J.: Oswald, A.J., 1997.
"The Macroeconomics of Happiness ,"
Papers
19, Centre for Economic Performance & Institute of Economics.
Garey Ramey & Valerie A. Ramey, 1991.
"Technology Commitment and the Cost of Economic Fluctuations ,"
NBER Working Papers
3755, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Pemberton, James, 1996.
"Growth trends, cyclical fluctuations, and welfare with non-expected utility preferences ,"
Economics Letters ,
Elsevier, vol. 50(3), pages 387-392, March.
[Downloadable!] (restricted)
Beaudry, Paul & Pages, Carmen, 2001.
"The cost of business cycles and the stabilization value of unemployment insurance ,"
European Economic Review ,
Elsevier, vol. 45(8), pages 1545-1572, August.
[Downloadable!] (restricted)
Other versions: Darrel Cohen, 2000.
"A quantitative defense of stabilization policy ,"
Finance and Economics Discussion Series
2000-34, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Otrok, Christopher, 2001.
"On measuring the welfare cost of business cycles ,"
Journal of Monetary Economics ,
Elsevier, vol. 47(1), pages 61-92, February.
[Downloadable!] (restricted)
Other versions: Gadi Barlevy, 2004.
"The Cost of Business Cycles under Endogenous Growth ,"
American Economic Review ,
American Economic Association, vol. 94(4), pages 964-990, September.
[Downloadable!] (restricted)
Other versions: Stephane Pallage & Michel A. Robe, 2002.
"The States vs. the states: On the Welfare Cost of Business Cycles in the U.S ,"
Cahiers de recherche du Département des sciences économiques, UQAM
20-17, Université du Québec à Montréal, Département des sciences économiques, revised Oct 2002.
[Downloadable!]
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2006.
"The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates ,"
NBER Working Papers
12159, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Olga gorbachev, 2007.
"Did Household Consumption Become More Volatile? ,"
ESE Discussion Papers
161, Edinburgh School of Economics, University of Edinburgh.
[Downloadable!]
Adam Elbourne & Debby Lanser & Bert Smid & Martin Vromans, 2008.
"Macroeconomic resilience in a DSGE model ,"
CPB Discussion Papers
96, CPB Netherlands Bureau for Economic Policy Analysis.
[Downloadable!]
Benjamin Eden, 2004.
"Substitution and Risk Aversion: Is Risk Aversion Important for Understanding Asset Prices? ,"
Working Papers
0422, Department of Economics, Vanderbilt University.
[Downloadable!]
Juan Carlos Cordoba & Genevieve Verdier, 2007.
"Lucas vs. Lucas: On Inequality and Growth ,"
IMF Working Papers
07/17, International Monetary Fund.
[Downloadable!]
Other versions:
Access and
download statistics Did you know? Over 800 institutions contribute their bibliographic data directly to this service.
This page was last updated on 2008-8-19.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .