Inflation and Welfare in Long-Run Equilibrium with Firm Dynamics
研究在现金先行约束和企业生产率分布内生化的模型中，通胀如何通过企业进入动态扭曲总生产率，并量化其对福利的影响。
We analyze the welfare cost of inflation in a model with cash-in-advance con-straints and an endogenous distribution of establishments ’ productivities. Inflation distorts aggregate productivity through firm entry dynamics. The model is calibrated to the United States economy and the long-run equilibrium properties are compared at low and high inflation. We find that increasing the annual inflation rate by 10 percentage points above the average rate in the U.S. would result in a fall in average productivity of roughly 1.3 percent. This decrease in productivity is not innocuous: it is responsible for about one half of the welfare cost of inflation. ∗The authors thank Riccardo DiCecio and Julia Thomas for helpful comments. We have also benefited from the comments of seminar participants at ECARES, Federal Reserve Bank of St. Louis, University of Minho and University of Warwick. All remaining errors are our own. Alexandre Janiak thanks Fondecyt for financial support. †University of Chile and IZA.