"We now want to compare both policies. As previously noted, both UI and UBI programs are significant improvements over the laissez-faire, i.e., self-insurance shown in the first lines of Tables 3 and 4. The UBI policy around its optimum may appear as a credible alternative to UI in both periods. However, for the shirking success probability considered in Table 3 (π = 0.20) and the monitoring cost calibrated to Oregon, the optimal UI policy is socially more desirable, as a comparison of average welfare across Tables 3 and 4 suggests. For both calibrations, UI is clearly a better insurance mechanism against idiosyncratic employment shocks than UBI, and the inefficiency caused by monitoring costs and cheating behavior do not offset this fact in our simulations."