Imperfections in risk and capital markets imply that individuals who lose jobs suffer from imperfect smoothing of consumption across states and times. Compared to the first best, there will be too little search. Optimal unemployment programs, which balance the marginal benefit of consumption...

Is it really three trillion? -- The costs to the nation's budget -- The true cost of caring for our veterans -- Costs of war that the government doesn't pay -- The macroeconomic effects of the war -- Global consequences -- Exiting Iraq -- Learning from our mistakes : reforms for the future --...