Welfare loss and policy trade-offs: Calvo vs. Rotemberg
比较了Calvo和Rotemberg两种定价模型在福利损失和通胀-产出动态上的差异，发现补贴类型（收入补贴或就业补贴）会影响两者是否一致，对货币政策设计有重要启示。
This paper shows that the Calvo and Rotemberg pricing models lead to different outcomes regarding welfare losses and inflation-output dynamics, based on the type of subsidies used to achieve an efficient steady state. When revenue subsidies are applied in the Rotemberg model, the inflation-output dynamics and welfare loss functions are identical to those of the Calvo model. However, with employment subsidies, the two models differ. Aligning the inflation-output dynamics causes differences in the welfare loss function. These findings underscore the importance of model selection in the design of monetary policy, influencing the trade-off between inflation and output gap stabilisation. • Welfare losses differ between Calvo and Rotemberg models based on subsidy type. • Revenue subsidies align the two models, but employment subsidies create differences. • Results highlight the impact of pricing mechanisms on optimal monetary policy design.