Aspects of Optimal Unemployment Insurance: Search, Leisure and Capital Market Imperfections / J. S. Flemming.

Format:

Book

Author/Creator:

Flemming, J. S.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0214.

NBER working paper series no. w0214

Language:

English

Subjects (All):

Unemployment insurance.

Unemployed.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Aspects of Optimal Unemployment Insurance

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1977.

Cambridge, Mass. : National Bureau of Economic Research, 1977.

Summary:

The object of this paper is to examine the importance of capital market assumptions. A special continuous-time model is developed in sections II-IV which is applicable to the perfect capital market case. It can also be used when there is no capital market at all (section IV). For 'reasonable' parameter values the optimal replacement rate (ratio of benefits to gross wage) appears to be less than 20% when capital markets are perfect but over 70% when they are non existent (i.e. no saving or dis-saving).

Notes:

Print version record

November 1977.