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dc.contributor.authorAvouyi-Dovi, Sanvi
dc.contributor.authorSahuc, Jean-Guillaume
dc.date.accessioned2013-03-26T10:29:22Z
dc.date.available2013-03-26T10:29:22Z
dc.date.issued2011-06
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/11154
dc.language.isoenen
dc.subjectWelfareen
dc.subjectMonetary policy objectivesen
dc.subjectDSGE modelen
dc.subjectBayesian econometricsen
dc.subject.ddc339en
dc.subject.classificationjelE58en
dc.subject.classificationjelC32en
dc.subject.classificationjelC11en
dc.titleOn the welfare costs of misspecified monetary policy objectivesen
dc.typeArticle accepté pour publication ou publié
dc.description.abstractenThis paper quantifies the effects on welfare of misspecified monetary policy objectives in a stylized DSGE model. We show that using inappropriate objectives generates relatively large welfare costs. When expressed in terms of ‘consumption equivalent’ units, these costs correspond to permanent decreases in steady-state consumption of up to two percent. The latter are generated by both the inappropriate choice of weights and the omission of variables. In particular, it is costly to assume an interest-rate smoothing incentive for central bankers when it is not socially optimal to do so. Finally, a parameter uncertainty decomposition indicates that uncertainty about the properties of markup shocks gives rise to the largest welfare costs.en
dc.relation.isversionofjnlnameJournal of Macroeconomics
dc.relation.isversionofjnlvol33en
dc.relation.isversionofjnlissue2en
dc.relation.isversionofjnldate2011-06
dc.relation.isversionofjnlpages151–161en
dc.relation.isversionofdoihttp://dx.doi.org/10.1016/j.jmacro.2011.01.004en
dc.relation.isversionofjnlpublisherElsevieren
dc.subject.ddclabelMacroéconomieen
dc.relation.forthcomingnonen
dc.relation.forthcomingprintnonen


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