In this article it is shown that when the effects of an increase in unemployment subsidies are studied in a general equilibrium framework, unemployment increases far less than in a "partial-partial" model, or may even decrease.
Working Paper No. 159
The Effects of Unemployment Compensation in General Equilibrium with Search Unemployment
Working Paper
Reference
Axell, Bo and Harald Lang (1986). “The Effects of Unemployment Compensation in General Equilibrium with Search Unemployment”. IFN Working Paper No. 159. Stockholm: Research Institute of Industrial Economics (IFN).
Axell, Bo and Harald Lang (1986). “The Effects of Unemployment Compensation in General Equilibrium with Search Unemployment”. IFN Working Paper No. 159. Stockholm: Research Institute of Industrial Economics (IFN).
Authors
Bo Axell, Harald Lang
