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Optimal unemployment insurance in GE: A robust calibration approach

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  • Cozzi, Marco

Abstract

A simple Monte Carlo calibration approach is implemented in a GE model with uninsurable employment risk to quantitatively study the optimal replacement rate of a public unemployment insurance (UI) scheme. The optimal UI sampling distribution is found to be bimodal.

Suggested Citation

  • Cozzi, Marco, 2012. "Optimal unemployment insurance in GE: A robust calibration approach," Economics Letters, Elsevier, vol. 117(1), pages 28-31.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:28-31
    DOI: 10.1016/j.econlet.2012.04.066
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    Cited by:

    1. Cozzi, Marco, 2014. "Equilibrium Heterogeneous-Agent models as measurement tools: Some Monte Carlo evidence," Journal of Economic Dynamics and Control, Elsevier, vol. 39(C), pages 208-226.
    2. Vandyck, Toon & Van Regemorter, Denise, 2014. "Distributional and regional economic impact of energy taxes in Belgium," Energy Policy, Elsevier, vol. 72(C), pages 190-203.

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    More about this item

    Keywords

    Calibration methods; Unemployment risk; Optimal unemployment insurance; Heterogeneous agents; Incomplete markets;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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