A public job can be seen as a source of insurance against income risk. Indeed, many public employees have job stability … government enhances the overall degree of insurance in the economy. In this paper, we introduce public employment in a standard … government, accounting for this extra source of insurance. In a model economy calibrated to Brazil, where public employment is …

We study asset-tested unemployment insurance in an incomplete markets model with moral hazard during job search. Asset … testing has two counteracting effects on welfare. On the one hand, it improves consumption insurance by introducing state … time-discount factors. We conclude that the current U.S. unemployment insurance system is approximately optimal. …

We study asset-tested unemployment insurance in an incomplete markets model with moral hazard during job search. Asset … testing has two counteracting effects on welfare. On the one hand, it improves consumption insurance by introducing state … time-discount factors. We conclude that the current U.S. unemployment insurance system is approximately optimal. …