The Welfare Cost of Business Cycles Revisited: Finite Lives and Cyclical Variation in Idiosyncratic Risk

By Kjetil Storesletten, Chris I. Telmer, Amir Yaron. 2001

224 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c9c56c02fb81858961b9df4a7f6518944304b7ee

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In Economics and Econometrics

Citations in the corpus

Emissions targets and the real business cycle: Intensity targets versus caps or taxes (2011, unknown): “22 debatable; arguments range from Lucas’s (1987) conclusion that they are a small concern to Storesletten et al.’s (2001) estimation that lifetime consumption costs of volatility are as high as 7.”
Job Displacement Risk and the Cost of Business Cycles (2007, methodology): “Following the previous literature (Imrohoroglu, 1989, Krebs, 2003a, Krusell and Smith, 1999, and Storesletten et al., 2001) we assume now that there are two aggregate states, S = L,H, corresponding to low economic activity (economic contraction) and high economic activity (economic expansion).”
Labor Income Dynamics and the Insurance from Taxes, Transfers, and the Family (2014, unknown): “…key for answering a number of important economic questions, including lifecycle consumption and portfolio behavior (see e.g. Gourinchas and Parker, 2002), the sources of inequality (see e.g. Huggett et al., 2011), and the welfare costs of business cycles (see e.g. Storesletten et al., 2001, 2004).”
Disinflation in a DSGE perspective: sacrifice ratio or welfare gain ratio? (2012, background): “Yun (2005), for instance, emphasizes the role of relative price dispersion, often neglected in linear models, in driving his results for optimal monetary policy.”
Precautionary Savings, Illiquid Assets, and the Aggregate Consequences of Shocks to Household Income Risk (2019, result): “62, which is consistent with the estimates in Storesletten et al. (2004). Table 1 summarizes the As this is very expensive computational-wise, we match the target-ratios within +/- 1%.”
An empirical investigation of labor income processes (2007, background): “…Campbell et al., 2001; Gourinchas and Parker, 2002; Guvenen, 2007), the determination of wealth inequality (Huggett, 1996; Castaneda et al., 2003), the welfare costs of business cycles (Storesletten et al., 2001; Lucas, 2003), and the determination of asset prices (Constantinides and Duffie, 1996).”