Abstract

  
 

References (6)



 


 



The Elasticity of the Unemployment Rate with Respect to Benefits


Kai Philipp Christoffel


European Central Bank (ECB)

Keith Kuester


Federal Reserve Banks - Federal Reserve Bank of Philadelphia
August 11, 2008

FRB of Philadelphia Working Paper No. 08-15

Abstract:     
If the Mortensen and Pissarides model with efficient bargaining is calibrated to replicate the fluctuations of unemployment over the business cycle, it implies a far too strong rise of the unemployment rate when unemployment benefits rise. This paper explores an alternative, right-to-manage bargaining scheme. This also generates the right degree of fluctuations of unemployment but at the same time implies a reasonable elasticity of unemployment with respect to benefits.

Number of Pages in PDF File: 11

Keywords: Real business cycles, bargaining, structural reforms, unemployment insurance

JEL Classification: E24, E32, J64, I38

working papers series


Download This Paper

Date posted: September 6, 2008  

Suggested Citation

Christoffel, Kai Philipp and Kuester, Keith, The Elasticity of the Unemployment Rate with Respect to Benefits (August 11, 2008). FRB of Philadelphia Working Paper No. 08-15. Available at SSRN: http://ssrn.com/abstract=1240847 or http://dx.doi.org/10.2139/ssrn.1240847

Contact Information

Kai Philipp Christoffel (Contact Author)
European Central Bank (ECB) ( email )
Kaiserstrasse 29
Frankfurt am Main, D-60311
Germany
Keith Kuester
Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )
Ten Independence Mall
Philadelphia, PA 19106-1574
United States
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 368
Downloads: 42
References:  6

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo6 in 0.390 seconds