We derive the shape of optimal unemployment insurance (UI) contracts when agents can exert search effort but face different search costs and have private information about their type. We derive a recursive solution of our dynamic adverse selection problem with repeated moral hazard. Conditions...

The present paper investigates the effectiveness of public subsidies to business enterprise research in a panel of OECD countries. We contribute to the literature by explicitly distinguishing between effects of a subsidy on R&D employment and expenditure, thereby accounting for a potential...