Alexei Boulatov, PhD Finance, Tenured Professor
Sofya Budanova, PhD Economics, Assistant Professor
Vincent Fardeau, PhD Finance, Assistant Professor
Markus Gebauer, PhD Economics, Assistant Professor
Runjie Geng, PhD Banking and Finance, Assistant Professor
Dmitry Makarov, PhD Finance, Associate Professor
Tatiana Mayskaya, PhD Social Science, Assistant Professor
Maxim Nikitin, PhD Economics, Associate Professor
Fabian Slonimczyk, PhD Economics, Associate Professor
Vladimir Sokolov, PhD Economics, Associate Professor
Sergey Stepanov, PhD Economics, Associate Professor
Alexander Usvitskiy, PhD Economics, Assistant Professor
Anna Yurko, PhD Economics, Associate Professor
Kirill Bukin, PhD, Associate Professor
Grigory Kantorovich, PhD, Tenured Professor, Distinguished Professor
Olga Kuzina, PhD Sociology, Professor
Anatoly Peresetsky, PhD, Tenured Professor
Alla Fridman, PhD, Tenured Professor
r, endogenous participation and involuntary unemployment. To overcome indivisibilities, optimal allocations involve lotteries over labor force participation and consumption as in Hansen (1985), while shifts in involuntary unemployment are due to search externalities as in Diamond (1982), and are consistent with Okun's Law. It is shown that self-fufillling fluctuations may emerge, as expectations of high unemployment reduce participation and output which, in turn, validates the high unemployment expectations. Unemployment insurance is shown to make local indeterminacy less likely and, therefore, is a powerful automatic stabilizer.