The presented paper proves that working time arrangements, which include hours flexibility and enable hours deposits, are appealing under product market uncertainty. The model integrates efficiency wage arguments into an implicit insurance-contract environment, thus extending the existing...

We use non-Gaussian features in U.S. macroeconomic data to identify aggregate supply and demand shocks while imposing minimal economic assumptions. Recessions in the 1970s and 1980s were driven primarily by supply shocks, later recessions were driven primarily by demand shocks, and the Great...