unemployment benefits in response to an unemployment shock in a simple, reduced-form model of the labor market. It is found that …. Adjustment costs of changing benefits can introduce hysteresis in benefit setting and unemployment. Both (very) bad and good … temporary shocks (including monetary) can permanently reduce unemployment benefits and the unemployment rate. A desirable …

We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …

We derive a sufficient statistics optimal income tax formula in a general model that incorporates unemployment and … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …