Template-type: ReDIF-Paper 1.0
Author-Name: Frank Portier 
Author-Email: fportier@cict.fr.
Author-Workplace-Name: Université de Toulouse
Author-Name: Luis A. Puch
Author-Email: lpuch@fedea.es
Author-Homepage: https://www.ucm.es/fundamentos-analisis-economico2/luis-a-puch
Author-Person: ppu1
Author-Workplace-Name: Fundación de Estudios de Economía Aplicada (FEDEA), Departamento de Economía Cuantitativa (Department 
	of Quantitative Economics), Facultad de Ciencias Económicas y Empresariales (Faculty of Economics and 
	Business), Universidad Complutense de Madrid.
Author-Workplace-Homepage: https://www.ucm.es/fundamentos-analisis-economico2
Title: The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets
Abstract: In this paper we measure the welfare cost of fluctuations in a simple representative
	agent economy with nonclearing markets. The market friction we consider involves price rigidities 
	and a voluntary exchange rationing scheme. These features are incorporated into an otherwise standard 
	neoclassical growth model. We show that the frictions we introduce make the losses from fluctuations much
	bigger than in a frictionless environment.
Classification-JEL: E32, C63, C68
Keywords: Cost of business cycles, Nonclearing markets, Dynamic general equilibrium
Length: 17 pages 
Creation-Date: 2004 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae0403.txt
File-URL: https://eprints.ucm.es/id/eprint/7717/1/0403.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:0403