TY - JOUR
T1 - Second-order approximation to the Rotemberg model around a distorted steady state
AU - Damjanovic, Tatiana
AU - Nolan, Charles
PY - 2011/2
Y1 - 2011/2
N2 - Social welfare objectives are investigated when changing prices is costly (Rotemberg, 1982). A quadratic welfare function is derived, with distorted steady state, implying inflation and output stabilization goals. Economic distortions influence inflation aversion in a way that differs from Calvo models.
AB - Social welfare objectives are investigated when changing prices is costly (Rotemberg, 1982). A quadratic welfare function is derived, with distorted steady state, implying inflation and output stabilization goals. Economic distortions influence inflation aversion in a way that differs from Calvo models.
KW - Calvo vs Rotemberg. Distorted steady state.
UR - http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V84-51H1DDD-2&_user=1026342&_coverDate=02/28/2011&_rdoc=1&_fmt=high&_orig=search&_origin=search&_sort=d&_docanchor=&view=c&_acct=C000050565&_version=1&_urlVersion=0&_userid=1026342&md5=3863b3cc14bbf3d3704682c206d33781&searchtype=a
U2 - doi:10.1016/j.econlet.2010.11.010
DO - doi:10.1016/j.econlet.2010.11.010
M3 - Article
SN - 0165-1765
VL - 110
SP - 132
EP - 135
JO - Economics Letters
JF - Economics Letters
IS - 2
T2 - Royal Economic Society 2010
Y2 - 18 April 2010 through 20 April 2010
ER -