The study explores how to improve unemployment insurance by considering both information problems and behavior incentives. The researchers found that the optimal insurance plan can actually increase expected consumption for some individuals during unemployment. By addressing adverse selection and moral hazard together, the optimal plan can reduce costs by more than 100% compared to the current U.S. system. It also achieves an additional 47% in cost savings compared to a plan that only focuses on moral hazard. Improved incentives for effort contribute to higher output, while a better distribution of consumption explains the rest of the savings.