The implication of subsistence consumption for economic welfare

doi:10.1016/j.econlet.2017.06.038

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	The implication of subsistence consumption for economic welfare
	Li, Qian 1; Shim, Myungkyu 2; Wen, Yongheng 1
刊名	ECONOMICS LETTERS
	2017-09
卷号	158 页码:30-33
关键词	Subsistence consumption-augmented RBC model Business cycles in less-developed countries Economic welfare
ISSN号	0165-1765
DOI	10.1016/j.econlet.2017.06.038
英文摘要	Using a subsistence consumption-augmented real business cycle model, we show that, for any given exogenous growth rates or parameter values, high initial subsistence levels increase the welfare cost of business cycles. This happens because subsistence consumption increases consumption volatility. Our finding suggests that eliminating economic fluctuations can be more beneficial to less-developed economies in which subsistence consumption is a high fraction of aggregate consumption. However, fast-growing economies exhibit a lower discrepancy of welfare costs between rich and poor countries, a result that also highlights the importance of growth-enhancing policies. (C) 2017 Elsevier B.V. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER SCIENCE SA
WOS记录号	WOS:000408300300009
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/909]
专题	上海财经大学
通讯作者	Shim, Myungkyu
作者单位	1.Shanghai Univ Finance & Econ, Sch Econ, 111 Wuchuan Rd, Shanghai 200433, Peoples R China; 2.Sogang Univ, Sch Econ, 35 Baekbeom Ro, Seoul 04107, South Korea
推荐引用方式 GB/T 7714	Li, Qian,Shim, Myungkyu,Wen, Yongheng. The implication of subsistence consumption for economic welfare[J]. ECONOMICS LETTERS,2017,158:30-33.
APA	Li, Qian,Shim, Myungkyu,&Wen, Yongheng.(2017).The implication of subsistence consumption for economic welfare.ECONOMICS LETTERS,158,30-33.
MLA	Li, Qian,et al."The implication of subsistence consumption for economic welfare".ECONOMICS LETTERS 158(2017):30-33.