Dear professor,

I am computing the optimal monetary policy based on welfare maximization. I have two policy regimes. welfare_I and welfare_II denote the welfare of two models. And welfare_steady_I and welfare_steady_II denote the steady-state welfare values of two models.

I define

Dwelfare_I =welfare_I - welfare_steady_I;

Dwelfare_II =welfare_II - welfare_steady_II;

```
Then I define
```

delta = (Dwelfare_II - Dwelfare_I) / Dwelfare_I;

My problem is, can ‘delta’ measure the welfare improvement effect of regime II over regime I?