turbulence experienced by the economy. In the former simulation we find that: raising benefits causes a rise in the duration of … simulation increasing turbulence in the economic environment causes an increase in total unemployment and in involuntary … response to increased turbulence; overall the average duration of unemployment rises. Finally, we replicate the LS finding that …

friendly". The paper also shows that an increase in turbulence, modelle as an increase probability of skill loss, is not a …