Krebs, Tom; Scheffel, Martin - Abteilung für Volkswirtschaftslehre, Universität Mannheim - 2012
-term unemployed. In this paper, we use an incomplete-market model with search unemployment to evaluate the macro-economic and welfare …-run (noncyclical)unemployment rate in Germany by 1.4 percentage points. We also find that the welfare of employed households increases …, but the welfare of unemployed households decreases even with moderate degree of risk aversion. …