This paper shows how uninsurable unemployment risk is crucial to qualitatively and quantitatively match macro responses … to uncertainty shocks. Empirically, uncertainty shocks i) generate deflationary pressure; ii) have considerably negative … jointly attain these results. Uncertainty shocks induce households' precautionary saving and firms' precautionary pricing …

wage and unemployment duration. We consider a model of household job search in which the outcomes of bargaining are … unemployment duration: the more the husband earns, the longer the wife searches for a job; whereas the more the wife earns, the … sooner the husband finds a job. Secondly, an increase of $100 in unemployment insurance (UI) per month lowers employment rate …

persistence. -- Precautionary savings ; unemployment insurance ; long-term unemployment ; income uncertainty … (2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states …, short-term as well as long-term unemployment. This allows us to examine the effects of persistence in the unemployment …

Households can rely on private savings or on public unemployment insurance to hedge against the risk of becoming … effects of unemployment on the portfolio choice of households in the US and in Germany. We distinguish short- and long …-term unemployment and find that, in case of short-term unemployment, unemployment insurance offsets the negative impact of unemployment …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states …, short-term as well as long-term unemployment. This allows us to examine the effects of persistence in the unemployment … process on portfolio choice. Our main findings are, first, that in case of short-term unemployment only, social security …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states …, short-term as well as long-term unemployment. This allows us to examine the effects of persistence in the unemployment … process on portfolio choice. Our main findings are, first, that in case of short-term unemployment only, social security …

impact on aggregate labor market performance and unemployment. In a two-sector labor market model with free mobility of labor …