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Welfare, stabilization, or growth: a comparison of different fiscal objectives

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  • Steven P. Cassou
  • Kevin J. Lansing

Abstract

An argument that stabilization produces welfare levels nearly identical to those of welfare maximation, and that both these policies yield large welfare gains and modest growth losses relative to growth maximization policies.

Suggested Citation

  • Steven P. Cassou & Kevin J. Lansing, 1996. "Welfare, stabilization, or growth: a comparison of different fiscal objectives," Working Papers (Old Series) 9614, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9614
    DOI: 10.26509/frbc-wp-199614
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    References listed on IDEAS

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    Cited by:

    1. Matheron, Julien, 2002. "The welfare cost of monopolistic competition revisited," Economics Letters, Elsevier, vol. 75(1), pages 129-133, March.
    2. Keith Blackburn & Dimitrios Varvarigos, 2008. "Human capital accumulation and output growth in a stochastic environment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(3), pages 435-452, September.
    3. Keith Blackburn & Dimitrios Varvarigos, 2006. "Human Capital Accumulation in a Stochastic Environment: Some New Results on the Relationship Between Growth and Volatility," Economics Discussion Paper Series 0618, Economics, The University of Manchester.
    4. Dimitrios Varvarigos, 2006. "On stabilisation policy: Are there conflicting implications for growth and welfare?," Discussion Paper Series 2006_19, Department of Economics, Loughborough University, revised Jul 2006.
    5. Marrero, Gustavo A. & Novales, Alfonso, 2007. "Income taxes, public investment and welfare in a growing economy," Journal of Economic Dynamics and Control, Elsevier, vol. 31(10), pages 3348-3369, October.

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