Landais, Camille; Michaillat, Pascal; Saez, Emmanuel - Centre for Economic Performance, LSE - 2011
This paper characterizes optimal unemployment insurance (UI) over the business cycle using a model of equilibrium … unemployment in which jobs are rationed in recession. It offers a simple optimal UI formula that can be applied to a broad class of … equilibrium unemployment models. In addition to the usual statistics (risk aversion and micro-elasticity of unemployment with …