Welfare analysis - how to?

[wjgatt]

Dear all,

I'd like to do some welfare analysis with a non-linear model under different calibrations for the variance of shocks as well as different fiscal rules. I've read that welfare is normally expressed in terms of steady state consumption (as in Gali's textbook), and involves the variance of some variables, but I'm rather lost in how I can do this in practise.

Any tips on the matter would be greatly appreciated.


Thanks and regards,
Will