competition in the goods market. We introduce proportional income taxation and unemployment benefits with Government balanced … budget constraint. Then, we evaluate the effects of both more competition in the goods market and higher unemployment … equilibrium unemployment and the Government budget. Higher unemployment benefits can be financed either by higher tax rate or …

-tradable sector and features unemployment in general equilibrium. Firms in both sectors use labour and an imported polluting factor of … production (”energy”). A tax on energy, recycled to reduce the payroll tax, will in general affect equilibrium unemployment in …

This paper measures the effect of extensions of unemployment insurance (UI) benefits on the unemployment rate using a … contributed to an increase in the unemployment rate by 1.2 percentage points, which is about a quarter of an observed increase … 2010 moderately slows down the recovery of the unemployment rate. Specifically, the model indicates that the last extension …

We study how optimal unemployment insurance (UI) benefits vary over the business cycle by estimating how the moral … hazard cost and the consumption smoothing benefit of UI vary with the unemployment rate. We find that the moral hazard cost … is procyclical, greater when the unemployment rate is relatively low. By contrast, our evidence suggests that the …

partially due to relative changes in the type of jobs available at these times. Unemployment Insurance (UI) helps individuals … transition through difficult economic situations such as periods of unemployment, and underemployment. While UI provides … insurance to households by helping them “smooth consumption†during a period of unemployment, studies have found evidence of …