More evidence that changing the UI system has large effects on inflows to unemployment. We document the importance of this separation rate channel for 🇩🇪 after the Hartz reforms & explain its importance using economic theory. @BenjaminHartung @makro_philip
📣Finally out in #Restud our paper “Bewley Banks” - with great @RustamJamilov
A model with incomplete insurance, heterogeneous *banks*, idiosyncratic risk and aggregate uncertainty.
Analog for banks of Bewley-Aiyagari-Krusell-Smith setup for consumers.👇#econtwitter