endogenous firing as well as a short-time work decision. In recessions, short-time work reduces the unemployment risk of workers …

a household's earnings or assets, leads to a higher implicit tax on old-age resources, but has desirable distributional …

recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using … household survey data from Germany. Second, we build a New Keynesian model with incomplete asset markets and labor market … risk of workers, which mitigates their precautionary savings motive. Using a quantitative model analysis, we show that this …

market instruments. Using intergenerational risk sharing arrangements, risks can be allocated better across the various …

-dimensional incomplete market, which is induced by forced unemployment risk and borrowing constraints. We show that the two dimensions …

consistent with the data. Banking regulation, while stabilizing at the aggregate level, may induce volatility at the household …

an incomplete markets version where no analytic solution is available. In both models and for different degrees of risk …