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Imperfections in risk and capital markets imply that individuals who lose jobs suffer from imperfect smoothing of consumption across states and times. Compared to the first best, there will be too little search. Optimal unemployment programs, which balance the marginal benefit of consumption...
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FREEFALL Free Markets and the Sinking of the Global Economy JOSEPH E. STIGLITZ ALLEN LANE an imprint of PENGUIN BOOKS C O NTE NTS PREFACE XI ...
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