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

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

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Issue
1983-3

Publication Info

In this report we present our estimate of the effects of UI benefit payments locally and nationally on the local economy of the Phoenix, Arizona SMSA (Maricopa County). Among the reported estimated effects of UI benefit payments are those pertaining to local sales, employment, unemployment, labor force, unemployment rate, population, and disposable personal income. These effects were obtained from computer simulations of the Maricopa County annual forecasting model and the Data Resources Incorporated (DRI) quarterly forecasting model for the U.S. The basic annual Maricopa County model was previously developed by the principal investigators under Department of Labor Contract [4]. The Maricopa model incorporates certain national variables that are forecasted by the DRI model.