In Finland the elderly unemployed are allowed to collect unemployment benefits up to the age of 60, when they can retire via a particular unemployment pension. In 1997 the eligibility age of persons benefiting from this scheme was raised from 53 to 55. We consider layo􀀞 risks, unemployment...

Recent literature has shown that the magnitude of behavioral heterogeneity of a population has an impact on the structure of mean demand. This paper investigates the effect of aggregation on the magnitude of behavioral heterogeneity if we aggregate disjoint subpopulations. Using the Hildenbrand...

Consider an economy in which households differ in behavior and disposable income: (i) we derive conditions on the joint distribution of both characteristics such that the Law of Demand holds for aggregate demand. We obtain that the poorer the household the less its behavior affects the structure...

By reexamining the effect of unemployment benefits on reemployment probabilities we make two contributions to the literature: first, we estimate separate effects for reemployment in the local or a distant region. Second, we address the problem of incomplete duration within a competing risks...

The retrospectively recalled calendar of activities in the European Community Household Panel is a prime resource for cross-country analysis of unemployment experience. We investigate the reliability of these data and find that 26 % of unemployed respondents misreported retrospectively their...

For the evaluation of policy reforms numerous governments use, among other sources, administrative social security data. Although this data is large and contains detailed information about policy measures, it inherits several limitations due to the administrative process of generating data. This...

Many popular estimators for duration models require independent competing risks or independent censoring. In contrast, copula based estimators are also consistent in presence of dependent competing risks. In this paper we suggest a computationally convenient extension of the Copula Graphic...

In order to confine excessive levels of temporary layoffs, US firms are taxed - albeit incompletely - according to the unemployment insurance benefits claimed by their laid off workers. In contrast, German construction firms are not charged according to their layoff history and should thus have...