Vibration fatigue of a vibration fatigue analysis is the modal analysis, that exposes the natural modes and frequencies of the vibrating structure and enables accurate prediction of the local stress responses for the given excitation. Only then, when the stress responses are known, can vibration fatigue be successfully characterized. The more classical approach of fatigue evaluation consists of cycle counting, using the rainflow algorithm and summation by means of the Palmgren-Miner linear damage hypothesis, that appropriately sums the damages of respective cycles. When the time history is not known, because the load is random ("e.g." a car on a rough road or
Welfare cost of business cycles output gap. Under this viewpoint, the welfare cost of business cycles is larger, because an economy with cycles not only suffers more variable consumption, but also lower consumption on average. If we consider two consumption paths, each with the same trend and the same initial level of consumption – and as a result same level of consumption per period on average – but with different levels of volatility, then, according to economic theory, the less volatile consumption path will be preferred to the more volatile one. This is due to risk aversion on part of individual agents. One way to