I cannot replicate the issue with the correct welfare function at Why do the welfare remain the same whether I set the order to 1 or 2? - #2 by jpfeifer
In that case, unconditional welfare is less negative for small frictions.
I cannot replicate the issue with the correct welfare function at Why do the welfare remain the same whether I set the order to 1 or 2? - #2 by jpfeifer
In that case, unconditional welfare is less negative for small frictions.