Karajvanov, Alexander K.; Mojon, Benoît; Silva, Luiz … - National Bureau of Economic Research - 2024
We model a reinsurance mechanism for the national unemployment insurance programs of euro area member states. The risk … of the euro area member states' unemployment expenditures risk in the aftermath of the 2009 sovereign debt crisis if … allowed to borrow up to 2 percent of the euro area GDP. Limiting, or not allowing borrowing by the scheme would have still …