During the last decade The Netherlands witnessed an increase in the pace of job creation and job destruction. A sensitivity analysis using an empirical model of labour market flows shows that <OL> <LI>the congestion in the matching process due to the increase in the pace of job creation and destruction...</li></ol>

A major aim of recent empirical modelling of the business cycle is to identify the relative importance of aggregate supply and demand shocks. Supply or technology shocks are associated with permanent (structural) effects on economic activity whereas demand shocks are related to temporary...