In my research, after introducing the policy I wanna research, The welfare improve only by 0.00177%, can it be put into practice? Or is it too small?
What do you mean with
It is well-known that welfare costs of business cycles in many models are tiny. So such a small number is not unexpected.
Thank you , professor jpfeifer. I mean can I write my paper now? Since you told me it not unexpected. I think my result can be put into paper. Thanks again.
Many thanks, professor jpfeifer. My new result is 4.660041203408132e-04 %, is it too small?
I have found many papers. In all papers, welfare gains is larger than 0.001%.
There is no general answer here. For one thing, it depends on how far your economy is from the optimum. If you are very close, no policy can lead to a big improvement
Many thanks, professor jpfeifer. You help me greatly. When I add an shock with 0.01, the welfare improvement is very small. But when the shock is 0.1, it get larger. Thank you again!!!