Big fruit and low-hanging fruit

Tyler Cowen recently linked to a George M. Constantinides┬ástudy of the welfare costs of unstable consumption: I estimate welfare benefits of eliminating idiosyncratic consumption shocks unrelated to the business cycle as 47.3% of household utility and benefits of eliminating idiosyncratic shocks related to the business cycle as 3.4% of utility. Estimates of the former substantially … Continue reading Big fruit and low-hanging fruit