This paper reconsiders the welfare benefit of unemployment insurance when individuals might self-insure through private savings but face aggregate fluctuations. We conclude that previous studies have under-estimated by half the average welfare gain from unemployment benefit by ignoring the...

This paper reconsiders the welfare benefit of unemployment insurance when individuals might self-insure through private savings but face aggregate fluctuations. We conclude that previous studies have under-estimated by half the average welfare gain from unemployment benefit by ignoring aggregate...

This paper reconsiders the welfare benefit of unemployment insurance when individuals might self-insure through private savings but face aggregate fluctuations. We conclude that previous studies have under-estimated by half the average welfare gain from unemployment benefit by ignoring aggregate...