Landais, Camille; Michaillat, Pascal; Saez, Emmanuel - C.E.P.R. Discussion Papers - 2010
This paper analyzes optimal unemployment insurance over the business cycle in a search model in which unemployment … novel effects ignored in previous studies of optimal unemployment insurance. First, job-search efforts have little effect on … unemployment insurance formula expressed in terms of those two elasticities and risk aversion. The formula coincides with the …