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100			_aGorn, Alexey and Trigari, Antonella _950307
245			_aAssessing the stabilizing effects of unemployment benefit extensions
260			_aAmerican Economic Journal: Macroeconomics
300			_a16(1), Jan, 2024: p.387-440
520			_aWe study the stabilizing role of benefit extensions. We develop a tractable quantitative model with heterogeneous agents, search frictions, and nominal rigidities. The model allows for a stabilizing aggregate demand channel and a destabilizing labor market channel. We characterize each channel analytically and find that aggregate demand effects quantitatively prevail in the United States. When feeding in estimated shocks, the model tracks unemployment in the two most recent downturns. We find that extensions lowered unemployment by a maximum of 0.36 pp in the Great Recession, while the joint stabilizing effect of extensions and benefit compensation peaked at 1.12 pp in the pandemic. – Reproduced https://www.aeaweb.org/articles?id=10.1257/mac.20210385
773			_aAmerican Economic Journal: Macroeconomics
906			_aLABOURS
942			_cAR