On Linear Quadratic Approximations
We prove the generality of the methodology proposed in Benigno and Woodford (2006). We show that, even in the presence of a distorted steady state, it is always possible and relatively simple to obtain a purely quadratic approximation to the welfare measure. We also show that, in order to do so, the timeless perspective assumption is crucial.
|Date of creation:||Jul 2006|
|Date of revision:||Jul 2006|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Jinill Kim and Sunghyun Henry Kim, 2001.
"Spurious Welfare Reversals in International Business Cycle Models,"
Computing in Economics and Finance 2001
3, Society for Computational Economics.
- Kim, Jinill & Kim, Sunghyun Henry, 2003. "Spurious welfare reversals in international business cycle models," Journal of International Economics, Elsevier, vol. 60(2), pages 471-500, August.
- Jinill Kim & Sunghyun Henry Kim, 1999. "Spurious Welfare Reversals in International Business Cycle Models," Virginia Economics Online Papers 319, University of Virginia, Department of Economics.
- Albert Marcet & Ramon Marimon, 2011.
CEP Discussion Papers
dp1055, Centre for Economic Performance, LSE.
- Albert Marcet & Ramon Marimon, 1994. "Recursive contracts," Economics Working Papers 337, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 1998.
- Marcet, A. & Marimon, R., 1998. "Recursive Contracts," Economics Working Papers eco98/37, European University Institute.
- Albert Marcet and Ramon Marimon, 2011. "Recursive Contracts," Working Papers 552, Barcelona Graduate School of Economics.
- Albert Marcet & Ramon Marimon, 2011. "Recursive Contracts," Economics Working Papers ECO2011/15, European University Institute.
- Benigno, Pierpaolo & Woodford, Michael, 2006.
"Optimal taxation in an RBC model: A linear-quadratic approach,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 30(9-10), pages 1445-1489.
- Benigno, Pierpaolo & Woodford, Michael, 2004. "Optimal Taxation in an RBC Model: A Linear-Quadratic Approach," CEPR Discussion Papers 4764, C.E.P.R. Discussion Papers.
- Pierpaolo Benigno & Michael Woodford, 2005. "Optimal Taxation in an RBC Model: A Linear-Quadratic Approach," NBER Working Papers 11029, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:544. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.