Drowned by numbers? Stabilization properties of an EU-wide unemployment insurance system

Etienne Farvaque and Florence Huart

Post-Print from HAL

Abstract: The recent crisis has given rise to proposals for the creation of a European unemployment insurance system. We simulate an EU-wide mechanism under various scenarios, varying methods of financing (common or country-specific contribution rates) and triggers for pay-outs (all time or contingent clauses). We analyse the impact of the system using different measures of stabilization under different fiscal multipliers. A system operating during bad times (periods where the increase in unemployment is large) would reduce GDP growth variability but also growth correlation among member countries. Hence, there is a trade-off between stabilization and synchronization of national business cycles.

Date: 2018-02-25
References: Add references at CitEc
Citations:

Published in Applied Economics, 2018, 50 (38), pp.4153-4181. ⟨10.1080/00036846.2018.1441517⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Drowned by numbers? Stabilization properties of an EU-wide unemployment insurance system (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02506028

DOI: 10.1080/00036846.2018.1441517

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().