consumption-smoothing-and-crowd-out-estimating-moral-hazard-using-difference-in-differences-about-insurance-for-hw-2
1. Consumption Smoothing and Crowd Out (a) Suppose we were to find that giving individuals an additional dollar of social insurance has no effect on their consumption drop when faced with an unemployment shock. What does this imply about the level of crowd out? Explain (1-2 sentences) (b) In the standard framework, what would that […]
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