"We develop a sequential procedure to test the adequacy of jump-diffusion models for return distributions. We rely on intraday data and nonparametric volatility measures, along with a new jump detection technique and appropriate conditional moment tests, for assessing the import of jumps and...

The consequences of cylical contingencies in unemployment insurance systems are considered in a search-matching model allowing for shifts between goodʺ and badʺ states of nature. An argument for state contingencies is that insurance arguments are stronger and incentive effects weaker in "bad"...