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Uncertainty about Welfare Effects of Consumption Fluctuations

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  • Romain Houssa

    ()
    (Center for Research in the Economics of Development, University of Namur)

Abstract

This paper proposes Bayesian estimates for welfare effects of consumption fluctuations and growth. Annual data from 82 developed and developing countries indicate a large degree of uncertainty as regards point estimates. Moreover, the comparison between the welfare gain from consumption stabilization and the welfare gain from growth yields inconclusive results for many developed and developing countries. These findings suggest the need for caution in drawing policy conclusions from point estimates.

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File URL: http://www.fundp.ac.be/eco/economie/recherche/wpseries/wp/1101.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by University of Namur, Department of Economics in its series Working Papers with number 1101.

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Length: 37 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:nam:wpaper:1101

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Keywords: Business Cycles; Growth Welfare;

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