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Replication data for: Rebalancing Frequency and the Welfare Cost of Inflation

Version
V0
Resource Type
Dataset
Creator
  • Silva, André C.
Publication Date
2012-04-01
Description
  • Abstract

    Cash-in-advance models usually require agents to reallocate money and bonds in fixed periods. Every month or quarter, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose how often they exchange bonds for money. In the benchmark specification, the welfare cost of 10 percent instead of 0 inflation increases from 0.1 percent of income with fixed periods to 1 percent with optimal periods. The results are robust to different preferences, to different compositions of income in bonds or money, and to the introduction of capital and labor. (JEL: E30, E40, E50)
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/mac.4.2.153 (Text)
Publications
  • Silva, André C. “Rebalancing Frequency and the Welfare Cost of Inflation.” American Economic Journal: Macroeconomics 4, no. 2 (April 2012): 153–83. https://doi.org/10.1257/mac.4.2.153.
    • ID: 10.1257/mac.4.2.153 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13

Silva, André C. (2012): Replication data for: Rebalancing Frequency and the Welfare Cost of Inflation. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E114242