Spurious Welfare Reversals in International Business Cycle Models

By Jinill Kim, Sunghyun Kim. 2003

369 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/00f5ade86d813f0dc49e782117222e6d4d67eed3

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Bayesian Analysis of DSGE Models (2006, background): “…of the analysis is to compare welfare across policies or market structures that do not have first-order effects on the model’s steady-state or to study asset pricing implications of DSGE models, a more accurate solution may be necessary; see, for instance, Kim and Kim (2003) or Woodford (2003).”
Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations? (2004, background): “However, Kim and Kim [43] and Obstfeld and Rogoff [59] demonstrate open economy examples where concentrating on the second order moments around the non-stochastic steady state can give incomplete and misleading information about the welfare effects of certain policies in models with incomplete marke”
Optimal interest rate rules, asset prices, and credit frictions (2005, background): “This implies that their mean 12See Kim and Kim (2003) for an analysis of the inaccuracy of welfare calculations based on log-linear approximations in dynamic open economies.”
Price Stability in Open Economies (2003, background): “There is then an additional distortion to cope with and the world social planner can indeed exploit the terms of trade volatility to correct for the different expected level of the disutility of producing goods across countries, as shown in (16) and (17).”
Optimal Monetary Policy Rules with Labor Market Frictions (2008, neutral): “V U t = [b+Et{(β λt+1 λt )[θtq(θt)(1− ρ)V E t+1 + (1− θtq(θt)(1− ρ))V U t+1]} (21) where b denotes real unemployment benefits.”
Asymptotic methods for asset market equilibrium analysis (2001, background): “Kim and Kim [ 16 ] have shown that this approach will often produce incorrect results.”
Bank Leverage Regulation and Macroeconomic Dynamics (2011, positive): “…with the unconditional expectation of household utility it implies.14 To this end, a second-order approximate solution of the model around the non-stochastic steady state is employed, in order to avoid well-known problems with policy evaluation using first-order solutions (Kim and Kim, 2003).”
Optimal Monetary Stabilization Policy (2010, background): “6), Kim and Kim (2003), or Benigno and Woodford (2008).”