Solution-Consumption smoothing and crowd out

Consumption smoothing and crowd out

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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.

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Consumption smoothing and crowd out

Reference no: EM132667818

Reference no: EM132667818

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