services are produced both in the market and within the households. We use the model to examine how unemployment and welfare … reduces unemployment whereas a tax cut on goods has no effect. A reform involving tax differentiation, with lower taxes on …

facilitates an analysis of how wage setting and unemployment is affected by punishment policies, which is ignored in the previous …

Should unemployment compensation be paid indefinitely at a fixed rate or should it decline (or increase) over a worker … s unemployment spell? We examine these issues using an equilibrium model of search unemployment. The model features … is that an optimal insurance program implies a declining sequence of unemployment compensation over the spell of …

both sectors, and (iii) reduces the unemployment rate. The effect of a higher audit rate is less clear. We find that a … ambiguous impact on unemployment and real wages. …