Document Type

Honors Project - Open Access

Abstract

Opponents of the Affordable Care Act argue that its individual mandate component is a "certified job-killer." In this paper, I develop a Real Business Cycle model with a search-based labor market to test the validity of these concerns. I integrate the individual mandate into the model and conduct a general equilibrium analysis of its effects. The simulated results show that the imposition of the individual mandate regime should result in higher levels of aggregate employment and output.

Included in

Economics Commons

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