# Welfare and Pruning

**URL:** <https://forum.dynare.org/t/welfare-and-pruning/11470>\
**Category:** Stochastic simulations\
**Created:** [14 March 2018 15:42 UTC](https://forum.dynare.org/t/welfare-and-pruning/11470 "2018-03-14T15:42:51Z")\
**Posts on this page:** 1\
**Showing post:** 14

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [8 November 2023 20:21 UTC](https://forum.dynare.org/t/welfare-and-pruning/11470/14 "2023-11-08T20:21:44Z")

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No, you cannot meaningfully evaluate steady state welfare. The steady state is conceptually a point where nothing ever changes and as such it will not consider any stochastics that are relevant for welfare comparisons. But you can evaluate welfare at the steady state values for the state variables. Price stickiness will affect that result via it’s effects on the decision rules.  
Have a look at

> [@Unconditional versus conditional Welfare measure](https://forum.dynare.org/t/unconditional-versus-conditional-welfare-measure/12467):
>
> Dear all, I have a question regarding the proper way of calculating the value of both the unconditional and conditional (upon starting from the steady state) welfare measure. From what I see after browsing similar questions here in the forum, in Dynare the unconditional welfare corresponds to the unconditional ergodic mean of the welfare variable: Welfare\_pos=strmatch(‘Welfare’,M\_.endo\_names,‘exact’); Welfare\_uncon=oo\_.mean(Welfare\_pos); By contrast, the conditional welfare criterion (upon s…

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