If consumers have finite lives, the aggregate consumption growth equation is affected by entries and exits (births and deaths). The authors use two- and three-period overlapping-generations models to show that entries and exits produce a relationship between aggregate consumption growth and the...

This paper applies a simple model of hours, employment, and earnings to Japanese manufacturing data and shows that a reduction in the number of standard hours is likely to increase overtime and reduce employment. These findings are in line with recent theoretical developments and in contrast to...