We investigate whether workers adjust hours worked in response to windfall gains using data from the European Household Panel. The results suggest that a rise in unearned income has a negative (although small) effect on working hours. In particular, after receiving a windfall gain, individuals...

Using Treasury Bill nominal interest rates data for the sample period 1957Q1-2005Q1, we apply the structural VAR methodology developed by Blanchard and Quah (1989) to achieve twofold objective. First of all, we are interested to estimate the time-path of the unobservable variables that,...