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Unemployment Insurance Over the Business Cycles

In: Modelling Unemployment Insurance

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  • Paola Potestio

    (Roma Tre University)

Abstract

The chapter addresses the question of how an optimal UI policy should specifically react to the changing cyclical conditions of the economy. The cyclical or countercyclical characterization of UI policy over the business cycle is a main point of the contributions reviewed here. Partial equilibrium and general equilibrium settings are again the different frameworks for the analysis. The optimal UI policy, its clear sign or its uncertain optimal sign, are supported by different arguments and conditions from the individual models. A particular interest is stressed for more composite results linked to the structure of the budget balance to finance the UI system, to shocks in aggregate productivity and to the comparison between commitment or discretion in optimal UI policies in the face of Covid-19-type recessions.

Suggested Citation

  • Paola Potestio, 2022. "Unemployment Insurance Over the Business Cycles," Contributions to Economics, in: Modelling Unemployment Insurance, chapter 0, pages 129-150, Springer.
  • Handle: RePEc:spr:conchp:978-3-030-91319-9_5
    DOI: 10.1007/978-3-030-91319-9_5
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