matching function. Wages are determined through Nash bargaining. We also consider aggregate productivity shocks, and a complete …We use the model to evaluate a tax-financed unemployment insurance scheme. Higher insurance is beneficial for … demonstrate that productivity changes in the model---in steady state as well as stochastic ones---generate rather limited …

matching function. Wages are determined through Nash bargaining. We also consider aggregate productivity shocks, and a complete … set of contingent claims conditional on this risk.We use the model to evaluate a tax-financed unemployment insurance … for different kinds of consumers. We also demonstrate that productivity changes in the model---in steady state as well as …

classes of questions are investigated. First, what is the impact of exogenously given labor taxes and unemployment benefits on … monopolistically competitive firms and through them on unemployment, inflation and welfare? A related question is, how does the level … maximize the expected real income of union members over states of employment and of unemployment, a central bank that strives …