Moyen, Stéphane; Stähler, Nikolai - Deutsche Bundesbank - 2009
The aim of this paper is to study the optimal duration of unemployment benefit entitlement duration across the business … cycle. We wonder if the entitlement duration should be prolonged in bad and shortened in good times. Because of consumption … behavior may be preferable. In a calibrated dynamic business cycle framework, we find that countercyclical benefit entitlement …
