Unemployment Insurance in Macroeconomic Stabilization

• 成果类型: Article
• 署名作者: Kekre, Rohan
• 署名单位: National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdac080
• 发表日期: 2023
• 页码: 2439-2480
• 关键词: economic stimulus payments; monetary-policy; precautionary savings; duration dependence; benefit extensions; cyclical behavior; great recession; search; WEALTH; MODEL

摘要

I study unemployment insurance (UI) in general equilibrium with incomplete markets, search frictions, and nominal rigidities. An increase in generosity raises the aggregate demand for consumption if the unemployed have a higher marginal propensity to consume than the employed or if agents precautionary save in light of future income risk. This raises output and employment unless monetary policy raises the nominal interest rate. In an analysis of the U.S. economy over 2008-2014, UI benefit extensions had a contemporaneous output multiplier around 1. The unemployment rate would have been as much as 0.4 pp higher absent these extensions.