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We study bank supervision by combining a theoretical model that distinguishes supervision from regulation and a novel dataset on work hours of Federal Reserve supervisors. We highlight the trade-offs between the benefits and costs of supervision and use the model to interpret the relationship...
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of improving the efficiency of UI: the duration of benefit payments, monitoring in conjunction with sanctions, and … monitoring and sanctions restores search incentives most effectively, since it brings additional incentives to search actively so … monitoring and sanctions than in the other two systems. Workfare appears to be inferior to the other two systems. …
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