Download This PaperThe N-Dimensional Bailey-Divisia Measure as a General-Equilibrium Measure of the Welfare Costs of In flation
13 Pages Posted: 31 Jan 2014
Date Written: July 14, 2011
Abstract
This paper shows that in economies with several monies the Bailey-Divisia multidimensional consumers surplus formula may emerge as an exact general-equilibrium measure of the welfare costs of inflation, provided that preferences are quasilinear.
Keywords: Inflation, Welfare, Bailey, Divisia, Surplus, Index
JEL Classification: C0, E40, E50
Suggested Citation: Suggested Citation
Cysne, Rubens Penha, The N-Dimensional Bailey-Divisia Measure as a General-Equilibrium Measure of the Welfare Costs of In flation (July 14, 2011). Economics Letters, Vol. 113, No. 2, 2011, Available at SSRN: https://ssrn.com/abstract=2387733
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