NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Liquidity and Insurance for the Unemployed

Robert Shimer, Ivan Werning

NBER Working Paper No. 11689
Issued in October 2005

---- Acknowledgements -----

We are grateful for comments from Daron Acemoglu, George-Marios Angeletos, Hugo Hopenhayn, Narayana Kocherlakota, Samuel Kortum, Ellen McGrattan, Richard Rogerson, two anonymous referees, and numerous seminar participants on this paper and an earlier version entitled "Optimal Unemployment Insurance with Sequential Search." Shimer and Werning's research is supported by grants from the National Science Foundation and the Sloan Foundation. Werning is grateful for the hospitality from the Federal Reserve Bank of Minneapolis.

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