NBER Publications by Christopher Phelan
Working Papers and Chapters
| April 1994 | Reconsidering the Costs of Business Cycles with Incomplete Markets
with Andrew Atkeson: w4719
In this paper, we measure the potential welfare gains from counter-cyclical policy in an economy with incomplete markets. In the course of conducting this measurement, we focus on two questions as central to the determination of those potential gains: (1) what is the likely effect of counter-cyclical policy on the nature of the income risk faced by individuals in the economy, and (2) what are the likely general equilibrium effects brought about as asset prices change due to the implementation of counter-cyclical policies? In taking up the first question, we see it as critical to distinguish whether the main effect of counter-cyclical policy is to directly reduce the income risk faced by each individual or is simply to reduce the correlation across individuals in the income risk that they... |
| January 1994 | Reconsidering the Costs of Business Cycles with Incomplete Markets
with Andrew Atkeson
in NBER Macroeconomics Annual 1994, Volume 9, Stanley Fischer and Julio J. Rotemberg, eds.
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