Second-order approximation to the Rotemberg model around a distorted steady state

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 110
Issue: 2
Pages: 132-135

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:110:y:2011:i:2:p:132-135
Journal Field
General
Author Count
2
Added to Database
2026-01-25