Template-type: ReDIF-Paper 1.0
Author-Name: Franck Portier
Author-Email: fportier@cict.fr.
Author-Workplace-Name: Université  de Toulouse 
Author-Name: Luis A. Puch
Author-Email: lpuch@fedea.es
Author-Workplace-Name: Universidad Complutense de Madrid, Departamento de Economía Cuantitativa; Instituto Complutense de Análisis Económico (ICAE)
Title: It’s a Small Small Welfare Cost of Fluctuations
Abstract: Lucas [1987] has shown that in a representative agent framework, the potential
	welfare gain from stabilizing consumption around its mean is small. We provide an
	example and some insight for why Lucas’ measure is an upper bound of the welfare
	cost of fluctuations in walrasian economies.
Classification-JEL: E32, C63, C68.
Keywords: Cost of Business Cycles – Dynamic General Equilibrium
Length: 9 pages 
Creation-Date: 2005
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae0513.txt 
File-URL: https://eprints.ucm.es/id/eprint/7908/1/0513.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:0513