Optimal unemployment insurance in GE: A robust calibration approach

► The optimal UI for a standard heterogeneous-agent macroeconomic model is computed. ► Monte Carlo methods are applied for considering 1,000 different calibrations. ► The sampling distribution of the optimal UI is bimodal. ► Often, the optimal UI does not decrease considerably with the level of moral hazard. ► Only three parameters have a first order effect on the welfare measure.