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- W4313389613 abstract "Abstract I study unemployment insurance (UI) in general equilibrium with incomplete markets, search frictions, and nominal rigidities. An increase in generosity raises the aggregate demand for consumption if the unemployed have a higher marginal propensity to consume than the employed or if agents precautionary save in light of future income risk. This raises output and employment unless monetary policy raises the nominal interest rate. In an analysis of the U.S. economy over 2008–2014, UI benefit extensions had a contemporaneous output multiplier around 1. The unemployment rate would have been as much as 0.4 pp higher absent these extensions." @default.
- W4313389613 created "2023-01-06" @default.
- W4313389613 creator A5078747703 @default.
- W4313389613 date "2022-12-19" @default.
- W4313389613 modified "2023-10-11" @default.
- W4313389613 title "Unemployment Insurance in Macroeconomic Stabilization" @default.
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- W4313389613 doi "https://doi.org/10.1093/restud/rdac080" @default.
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