labor market to compare unemployment insurance (UI) expansions and payroll subsidies. In isolation, payroll subsidies that …

This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … European unemployment rates observed during the seventies. The explanation given is that even if the unemployment rate would … job creation remains low making the return to a low unemployment rate impossible. The paper shows that in some cases …

I calculate unemployment multipliers of fiscal consolidation policies in a standard, closed-economy New Keynesian … percentage of family firms in the labor force. I find that fiscal austerity raises unemployment. Both at peak and cumulatively …, unemployment reacts least when the budget is consolidated by increasing the rate of value-added tax. At peak, the highest increase …

I calculate unemployment multipliers of fiscal consolidation policies in a standard, closed-economy New Keynesian … percentage of family firms in the labor force. I find that fiscal austerity raises unemployment. Both at peak and cumulatively …, unemployment reacts least when the budget is consolidated by increasing the rate of value-added tax. At peak, the highest increase …

We analyze the general equilibrium effects of countercyclical unemployment benefit policies. Our heterogenous …-agent model features costly job search with imperfect insurance of unemployment risk and individual savings. Our model predicts …: (1) the additional unemployment under a countercyclical policy relative to that under an acyclical policy to be a …

This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … unemployment rates observed during the seventies. The explanation given is that even if the unemployment rate would decrease it can … remains low making the return to low unemployment rates impossible. The paper shows that in some cases transition to the low-unemployment …

In this paper, I show that the decline in household consumption during unemployment spells depends on both liquid and … illiquid asset positions. I also provide evidence that unemployment spells predict the withdrawal of illiquid assets …, particularly when households have few liquid assets. Motivated by these findings, I embed endogenous unemployment risk in a two …

stand out. First, fiscal rules enhance the positive effects of discretionary fiscal policy on output and unemployment if …

This paper shows how fiscal policy affects unemployment in a New Keynesian model with search and matching frictions and …. Several findings stand out. First, unemployment mult ipliers for spending and consumption tax cuts are substantial, even …