Optimal Unemployment Insurance with Unobservable Savings

摘要: This paper studies the optimal design of an unemployment insurance system in a repeated moral hazard environment where individual’s can save and these savings are private information. additional source informational assymetry requires special treatment, here I apply method developed Werning (2000). Contrary to existing results literature find that benefits not necessarily decreasing with duration. More importantly, numerical show, however, schedule is increasing but extremely flat, so constant may provide excellent approximation UI schedule.