This paper analyzes the effect of unemployment insurance sanctions on the transition rate from unemployment to employment. Sanctions are punitive benefits reductions that are supposed to make recipients comply with cer­tain minimum requirements concerning search behavior. We use a unique set of...

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...