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"This paper examines the causes of the observed increase in the average duration of unemployment over the past thirty … in the generosity and coverage of unemployment insurance. We find that changes in the composition of the labor force and … institutional changes can only partially account for the longer duration of unemployment. We construct a job search model and …
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In moral hazard models, bank shareholders have incentives to transfer wealth from the deposit insurer - that is, maximize put option value - by pursuing riskier strategies. For safe banks with large charter value, however, the risk-taking incentive is outweighed by the possibility of losing...
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The U.S. business cycle expansion that started in March 1991 is the longest on record. This paper uses statistical techniques to examine whether this expansion is a onetime unique event or whether its length is a result of a change in the stability of the U.S. economy. Bayesian methods are used...
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