Optimal Unemployment Insurance

Author : Andreas Pollak
Publisher : Mohr Siebeck
Page : 204 pages
File Size : 45,9 Mb
Release : 2007
Category : Business & Economics
ISBN : 3161493044

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Optimal Unemployment Insurance by Andreas Pollak Pdf

Designing a good unemployment insurance scheme is a delicate matter. In a system with no or little insurance, households may be subject to a high income risk, whereas excessively generous unemployment insurance systems are known to lead to high unemployment rates and are costly both from a fiscal perspective and for society as a whole. Andreas Pollak investigates what an optimal unemployment insurance system would look like, i.e. a system that constitutes the best possible compromise between income security and incentives to work. Using theoretical economic models and complex numerical simulations, he studies the effects of benefit levels and payment durations on unemployment and welfare. As the models allow for considerable heterogeneity of households, including a history-dependent labor productivity, it is possible to analyze how certain policies affect individuals in a specific age, wealth or skill group. The most important aspect of an unemployment insurance system turns out to be the benefits paid to the long-term unemployed. If this parameter is chosen too high, a large number of households may get caught in a long spell of unemployment with little chance of finding work again. Based on the predictions in these models, the so-called "Hartz IV" labor market reform recently adopted in Germany should have highly favorable effects on the unemployment rates and welfare in the long run.

Author : Tim Mennel
Publisher : Unknown
Page : 119 pages
File Size : 50,7 Mb
Release : 2004
Category : Electronic
ISBN : 3898258718

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Studies on Optimal Unemployment Insurance by Tim Mennel Pdf

Author : Carl Davidson
Publisher : Unknown
Page : 64 pages
File Size : 44,5 Mb
Release : 1995
Category : Unemployment insurance
ISBN : CORNELL:31924069102618

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Optimal Unemployment Insurance by Carl Davidson Pdf

Author : Stéphane Moyen,Nikolai Stähler,Fabian Winkler
Publisher : Unknown
Page : 0 pages
File Size : 54,8 Mb
Release : 2016
Category : Electronic
ISBN : 3957292913

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Optimal Unemployment Insurance and International Risk Sharing by Stéphane Moyen,Nikolai Stähler,Fabian Winkler Pdf

Author : Marcus Hagedorn
Publisher : Unknown
Page : 49 pages
File Size : 46,9 Mb
Release : 2007
Category : Electronic
ISBN : OCLC:255739222

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An Adverse Selection Model of Optimal Unemployment Insurance by Marcus Hagedorn Pdf

Author : Raj Chetty
Publisher : Unknown
Page : 48 pages
File Size : 54,9 Mb
Release : 2005
Category : Social security
ISBN : IND:30000095359695

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A General Formula for the Optimal Level of Social Insurance by Raj Chetty Pdf

In an influential paper, Baily (1978) showed that the optimal level of unemployment insurance (UI) in a stylized static model depends on only three parameters: risk aversion, the consumption-smoothing benefit of UI, and the elasticity of unemployment durations with respect to the benefit rate. This paper examines the key economic assumptions under which these parameters determine the optimal level of social insurance. A Baily-type expression, with an adjustment for precautionary saving motives, holds in a very general class of dynamic models subject to weak regularity conditions. For example, the simple reduced-form formula derived here applies with arbitrary borrowing constraints, endogenous insurance markets, and search and leisure benefits of unemployment. A counterintuitive aspect of this result is that the optimal benefit rate appears not to depend on (1) any benefit of UI besides consumption-smoothing or (2) the relative magnitudes of income and substitution effects in the link between UI benefits and durations. However, these parameters enter implicitly in the optimal benefit calculation, and estimating them can be useful in testing whether the values of the primary inputs are consistent with observed behavior.

Author : Paola Potestio
Publisher : Springer Nature
Page : 182 pages
File Size : 53,5 Mb
Release : 2022-01-28
Category : Business & Economics
ISBN : 9783030913199

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Modelling Unemployment Insurance by Paola Potestio Pdf

This book examines unemployment insurance policy through a survey, taking stock of the theoretical work in the field of labor economics. It closely follows and assesses developments in the modelling of optimal unemployment insurance (UI) policies, beginning with the initial analytical findings produced in the second half of the 1970s. A main part of the survey is devoted to the two basic strands of analysis about, respectively, the optimal level of UI benefits and the optimal time profile of UI policy. The book has two different objectives. The first is to provide an essential summary of the individual models, with the intention of underscoring how a number of specific messages for the policy-maker can be derived from analytical constructions. It further emphasizes and comments on what the models deliver to UI policy-makers. The second objective is to stress the importance and extension of open questions in the field of the theoretical approach to the unemployment insurance issue. The survey discusses the multiplicity of heterogeneities of the labor world in particular as relevant for UI issues on the one side, and on the other hand, the independence of the two basic choices of UI policy, its meaning and its limits, and the possible forms of complementarity between these choices. The book is a must-read for researchers, students, and policy-makers interested in a better understanding of the field of labor economics in general, as well as unemployment insurance policies in particular.

Author : Robin W. Boadway,Andrew J. Oswald
Publisher : Kingston, Ont. : Institute for Economic Research, Queen's University
Page : 32 pages
File Size : 54,6 Mb
Release : 1982
Category : Income tax
ISBN : CORNELL:31924002117582

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Unemployment Insurance and Redistributive Taxation by Robin W. Boadway,Andrew J. Oswald Pdf

Author : Steven E. Landsburg
Publisher : Simon and Schuster
Page : 364 pages
File Size : 47,8 Mb
Release : 2012-05-10
Category : Business & Economics
ISBN : 9781471112232

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The Armchair Economist by Steven E. Landsburg Pdf

Air bags cause accidents, because well-protected drivers take more risks. This well-documented truth comes as a surprise to most people, but not to economists, who have learned to take seriously the proposition that people respond to incentives. In The Armchair Economist, Steven E. Landsburg shows how the laws of economics reveal themselves in everyday experience and illuminate the entire range of human behavior. Why does popcorn cost so much at the cinema? The 'obvious' answer is that the owner has a monopoly, but if that were the whole story, there would also be a monopoly price to use the toilet. When a sudden frost destroys much of the Florida orange crop and prices skyrocket, journalists point to the 'obvious' exercise of monopoly power. Economists see just the opposite: If growers had monopoly power, they'd have raised prices before the frost. Why don't concert promoters raise ticket prices even when they are sure they will sell out months in advance? Why are some goods sold at auction and others at pre-announced prices? Why do boxes at the football sell out before the standard seats do? Why are bank buildings fancier than supermarkets? Why do corporations confer huge pensions on failed executives? Why don't firms require workers to buy their jobs? Landsburg explains why the obvious answers are wrong, reveals better answers, and illuminates the fundamental laws of human behavior along the way. This is a book of surprises: a guided tour of the familiar, filtered through a decidedly unfamiliar lens. This is economics for the sheer intellectual joy of it.

Author : Kenneth L. Judd
Publisher : MIT Press
Page : 657 pages
File Size : 51,8 Mb
Release : 2023-04-04
Category : Business & Economics
ISBN : 9780262547741

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Numerical Methods in Economics by Kenneth L. Judd Pdf

To harness the full power of computer technology, economists need to use a broad range of mathematical techniques. In this book, Kenneth Judd presents techniques from the numerical analysis and applied mathematics literatures and shows how to use them in economic analyses. The book is divided into five parts. Part I provides a general introduction. Part II presents basics from numerical analysis on R^n, including linear equations, iterative methods, optimization, nonlinear equations, approximation methods, numerical integration and differentiation, and Monte Carlo methods. Part III covers methods for dynamic problems, including finite difference methods, projection methods, and numerical dynamic programming. Part IV covers perturbation and asymptotic solution methods. Finally, Part V covers applications to dynamic equilibrium analysis, including solution methods for perfect foresight models and rational expectation models. A website contains supplementary material including programs and answers to exercises.

Author : Mr.Dennis J. Snower
Publisher : International Monetary Fund
Page : 22 pages
File Size : 51,7 Mb
Release : 1995-07-01
Category : Business & Economics
ISBN : 9781451848649

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Unemployment Benefits Versus Conditional Negative Income Taxes by Mr.Dennis J. Snower Pdf

The paper analyzes the wage-employment effects of replacing unemployment benefits by negative income taxes. It first surveys the major equity and efficiency effects of unemployment benefits versus negative income taxes, and summarizes the salient features of many European unemployment benefit systems in this light. Second, it presents a simple theoretical model that focuses on the relative wage-employment effects of unemployment benefits versus negative income taxes. Finally, it provides some empirical groundwork for assessing this relative effect

Author : Stephen A. Woodbury,Carl Davidson
Publisher : Springer Science & Business Media
Page : 241 pages
File Size : 54,9 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9789401002356

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Search Theory and Unemployment by Stephen A. Woodbury,Carl Davidson Pdf

Search Theory and Unemployment contains nine chapters that survey and extend the theory of job search and its application to the problem of unemployment. The volume ranges from surveys of job search theory that take microeconomic and macroeconomic perspectives to original theoretical contributions which focus on the externalities arising from non-sequential search and search under imperfect information. It includes a clear and authoritative survey of econometric methods that have been developed to estimate models of job search, as well as two lucid contributions to the empirical search literature. Finally, it includes a study that reviews and extends the literature on optimal unemployment insurance and concludes with an appraisal of the influence of search theory on the thinking of macroeconomic policymakers.

Author : Sherwin Rosen
Publisher : Unknown
Page : 88 pages
File Size : 51,7 Mb
Release : 1983
Category : Insurance, Unemployment
ISBN : IND:39000004058140

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Unemployment and Insurance by Sherwin Rosen Pdf

This paper elaborates equilibrium properties of contract labor markets when cost barriers limit labor mobility in response to demand and productivity shifts. Unemployment is sustained because the marginal value of labor is not equated across all firms; however the equilibrium contract optimally allocates a worker's time between market and nonmarket uses, given transactions cost-mobility constraints. Contracts provide full unemployment insurance for risks that are diversifiable by pooling among firms. Nondiversifiable (macro) risks are only partially shifted,largely through self-insurance (contingency saving). Increasing diversifiable risk has social value, similar to the value of an option. Increasing nondiversifiable risk has negative value because it reduces lifetime consumption. The main empirical implication of contract theory is shown to be closely related to the permanent income hypothesis and establishes linkages between labor activities and consumption behavior. It is atheory of consumption rigidity rather than wage rigidity. Another empirical implication is that unemployment incidence is proportional to comparative advantage in normarket production. Layoffs are ordered by workers' relative productivity in nonmarket compared with market sectors. The theory is used to analyze some features of the U.S. employment system. Its empirical support is briefly reviewed.

Author : Richard Layard,P. Richard G. Layard,S. J. Nickell,Richard Jackman
Publisher : Oxford University Press, USA
Page : 678 pages
File Size : 55,5 Mb
Release : 2005
Category : Business & Economics
ISBN : 0199279179

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Unemployment by Richard Layard,P. Richard G. Layard,S. J. Nickell,Richard Jackman Pdf

This broad survey of unemployment will be a major source of reference for both scholars and students.

Author : David E. Balducchi,Christopher J. O'Leary,Suzanne Simonetta,Wayne Vroman
Publisher : W.E. Upjohn Institute
Page : 247 pages
File Size : 47,8 Mb
Release : 2018-09-11
Category : Political Science
ISBN : 9780880996525

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Unemployment Insurance Reform by David E. Balducchi,Christopher J. O'Leary,Suzanne Simonetta,Wayne Vroman Pdf

The Unemployment Insurance (UI) system is a lasting piece of the Social Security Act which was enacted in 1935. But like most things that are over 80 years old, it occasionally needs maintenance to keep it operating smoothly while keeping up with the changing demands placed upon it. However, the UI system has been ignored by policymakers for decades and, say the authors, it is broken, out of date, and badly in need of repair. Stephen A. Wandner pulls together a group of UI researchers, each with decades of experience, who describe the weaknesses in the current system and propose policy reforms that they say would modernize the system and prepare us for the next recession.