Nber Working Paper Series Optimal Unemployment Insurance When Income Effects Are Large

I thank Julie Cullen, David Card, David Cutler, Amy Finkelstein, Emmanuel Saez, Jesse Shapiro, seminar participants at Harvard, Yale, Stanford, Chicago, Princeton, Berkeley, Northwestern, Madison, and Columbia, and especially Gary Chamberlain, Martin Feldstein, Jerry Hausman, Caroline Hoxby, and Larry Katz for helpful comments. Philippe Bouzaglou and David Lee provided excellent research assistance. Financial support from the National Science Foundation, Harvard University, NBER, and State Farm is gratefully acknowledged. The views expressed herein are those of the author(s) and not necessarily those of the National Bureau of Economic Research.