Effects of Aggregate Unemployment Insurance Benefits in the U.S. on the Operation of a Local Economy

摘要

In this study, estimations are made of the effects of national as well as local UI benefit payments on a local economy. The Phoenix Arizona SMSA in 1975-76 served as the local labor market. The impact of UI benefits was measured for economic activity such as employment, local sales, disposable personal income, labor force and population. The Maricopa County (Phoenix Arizona SMSA) annual forecasting model developed by the University of Arizona and the Data Resources Incorporated (DRI) quarterly forecasting model were used for simulations. The simulations produced estimates of the effects of the absence of benefit payments on the local and national economies, the effects of the absence of benefit payments locally on the local economy, and lastly, the effects of the absence of benefit payments nationally on the local economy.