THE WELFARE COST OF INFLATION: AN EXTENSION OF THE LUCAS MODEL AND NEW EVIDENCE

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

JAFARI SAMIMI A.; TAGHI NEJAD OMRAN V.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: Journal of Economic Research Year:2004 | Volume:- | Issue:64 Page(s): 55-72

Download Full-Text

Persian Verion

View:

1,275

Download:

Cites:

Information Journal Paper

Title

THE WELFARE COST OF INFLATION: AN EXTENSION OF THE LUCAS MODEL AND NEW EVIDENCE

Author(s)

JAFARI SAMIMI A. | TAGHI NEJAD OMRAN V. | Issue Writer Certificate

Keywords

WELFARE COSTQ3

INFLATIONQ2

LUCAS MODELQ4

BANKQ2

Abstract

The purpose of this paper is to see the effects of including a BANKing sector in the Lucas (2000) model. As Lucas, we have also used McCallum and Goodfrinds (1979) "Shopping Time Model (STM)", in which the fundamental assumption is that consumption requires time spent shopping (or transacting) and transaction time may decrease by holding a greater amount of real balance. In our model INFLATION can impose WELFARE COST by two distorting channels: first, during INFLATIONary period households intend to decrease their non interest-bearing money, in order to reduce the impacts of INFLATION. Therefore, their benefits from the so-called liquidity services of money to facilitate transactions will be declined. In other words, INFLATION makes them allocate more resources in transaction time and less in producing consumption goods. To explain the second channel, it should be said, INFLATION may increase demand for BANKing services to economize transaction time. Therefore, the scarce resources are transferred to the BANKing sector. These resources can be considered as a social loss. The reason is, if INFLATION were lower the resources could be used directly in order to increase consumption goods. The result of introducing new channel to estimate WELFARE COST of inflation shows that by extending LUCAS MODEL the WELFARE COST of inflation could be measured more precisely.

Cites

References

No record.

Cite

APA: Copy

JAFARI SAMIMI, A., & TAGHI NEJAD OMRAN, V.. (2004). THE WELFARE COST OF INFLATION: AN EXTENSION OF THE LUCAS MODEL AND NEW EVIDENCE. TAHGHIGHAT-E-EGHTESADI, -(64), 55-72. SID. https://sid.ir/paper/11903/en

Vancouver: Copy

JAFARI SAMIMI A., TAGHI NEJAD OMRAN V.. THE WELFARE COST OF INFLATION: AN EXTENSION OF THE LUCAS MODEL AND NEW EVIDENCE. TAHGHIGHAT-E-EGHTESADI[Internet]. 2004;-(64):55-72. Available from: https://sid.ir/paper/11903/en

IEEE: Copy

A. JAFARI SAMIMI, and V. TAGHI NEJAD OMRAN, “THE WELFARE COST OF INFLATION: AN EXTENSION OF THE LUCAS MODEL AND NEW EVIDENCE,” TAHGHIGHAT-E-EGHTESADI, vol. -, no. 64, pp. 55–72, 2004, [Online]. Available: https://sid.ir/paper/11903/en

Related Journal Papers