Damjanovic, T. and Nolan, C. (2011) Second-order approximation to the Rotemberg model around a distorted steady state. Economics Letters, 110(2), pp. 132-135. (doi: 10.1016/j.econlet.2010.11.010)
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Publisher's URL: http://dx.doi.org/10.1016/j.econlet.2010.11.010
Abstract
Social welfare objectives are investigated when changing prices is costly (Rotemberg, 1982). A quadratic welfare function is derived, with a distorted steady state, implying inflation and output stabilization goals. Economic distortions influence inflation aversion in a way that differs from Calvo models.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Nolan, Professor Charles |
Authors: | Damjanovic, T., and Nolan, C. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Economics Letters |
Publisher: | Elsevier |
ISSN: | 0165-1765 |
ISSN (Online): | 1873-7374 |
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