We study the welfare implications of shutting down long-run unemployment and exclusion. We develop a heterogeneous-agents model along the lines of Krussell and Smith (1998) that takes the existence of uninsured long-run unemployment explicitly into account. The status of a given individual in...

This paper illustrates using a very simple model that admits a close form solution that takes risk into account how to apply the existing numerical methods in a very simple way. Contrary to most existing models to teach solution methods, this model possesses non trivial properties as far as risk...

Recent studies of aggregate job flows in the US economy indicate that (i) specific sectoral shocks are important to account for aggregate job flows dynamics and (ii) aggregate creation and destruction dynamics display significant non-linearities. This paper aims to study whether a simple...