Stabilising the Euro Area through unemployment benefits re-insurance scheme

Guillaume Claveres and Jan Stráský

No 1497, OECD Economics Department Working Papers from OECD Publishing

Abstract: The paper examines the possible design and macroeconomic stabilisation properties of a euro area unemployment benefits re-insurance scheme using annual historical data from 2000 to 2016. The scheme we propose is similar in some aspects to the recent proposals, including the IMF’s paper on the central fiscal capacity, while preserving important re-insurance characteristics, such as experience rating and caps on cumulative balances. Counterfactual simulations for individual euro area countries suggest that the scheme, at the cost of average annual contributions of 0.17% of national GDP, could have (i) provided additional macroeconomic stabilisation in the financial crisis of 2009-2013, both at the euro area level and at the level of individual countries hit by the crisis, and (ii) avoided permanent transfers among countries.

Keywords: fiscal integration; Macroeconomic stabilisation; risk-sharing; transfer scheme (search for similar items in EconPapers)
JEL-codes: E61 E62 F42 F45 H87 (search for similar items in EconPapers)
Date: 2018-08-03
New Economics Papers: this item is included in nep-ias and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1787/6ab5edd0-en (text/html)

Related works:
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:oec:ecoaaa:1497-en

Access Statistics for this paper

More papers in OECD Economics Department Working Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().