On the Welfare Costs of Business Fluctuations in Sweden 1970 - 2007
In this study I analyse models for computing the welfare costs of business fluctuations. Lucas’ (1987) model is very simple, as it only considers consumption fluctuations. The model proposed by Galí, Gertler and Lopez-Salido (2007) includes not only consumption fluctuations, but also fluctuations in hours worked. I apply variations of these models on Swedish data for the period 1970 – 2007. I also