This paper explores the mean-reverting behavior of the unemployment rate using monthly geographically disaggregated … regimes at unknown points of time. We find that the Great Recession also altered the persistence of the unemployment rate …

, in terms of economic growth, a passive unemployment policy (unemployment insurance) with an active unemployment policy … of unemployment being growth reducing, under realistic parameterization, we show that the government, under an active … policy, can generate higher growth without any compromise on its own consumption, when compared to the unemployment benefit …