²²In addition, the condition $met > 0$ suggests the condition $R κuΠ > 1- R$ . This follows from (34) below. It is equivalent to $Π = cet+1∕cut+1 > ((1 - R )∕R)∕κu$ , i.e. the marginal propensity to consume in the unemployment state must be sufficiently small. The appendix shows that this condition is automatically satisfied if the RIC and GIC are imposed, thus no additional restrictions are needed to guarantee positive wealth in the state of unemployment.