Optimal Unemployment Insurance Policy
Published Online:1 Apr 1985https://doi.org/10.1287/opre.33.2.263
Abstract
In this paper, we construct a theoretical model of unemployment insurance. Using techniques and concepts of game theory, we investigate, on one hand, the objectives and strategies of government, and on the other, those of an unemployed job seeker. Most of our results describing the job seeker's optimal strategies agree with the results found in the empirical literature in the area of unemployment insurance.
