How Long Would It Take An American Neoclassical Post-War Representative Agent To Stop Worrying That Capitalism Was Doomed?
Michael Sampson Department of Economics, Concordia University, 1455 de Maisonneuve Blvd. W. Montreal, Quebec
Abstract In this paper I consider the welfare cost of uncertainty regarding the nature of the American post-war economy. I derive a welfare measure of the cost of this uncertainty and show how this welfare measure can be additively decomposed into the cost due to risk aversion and the cost due to estimation errors. Calculations show that the welfare cost of regime uncertainty was quite high until 1960, dropped significantly during the 1960's and became insignificant by the early 1970's.
Available from http://132.205.57.9/economics/Discusp/deptpapr/dp9815.pdf
Clearly I was wrong in my believe that humor was dead on the North American continent cheers Bill C