02324cas a2200301 a 4500 AALejournalIMF021537 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513572680 1018-5941 BD-DhAAL BD-DhAAL Hellwig, Klaus-Peter. Supply and Demand Effects of Unemployment Insurance Benefit Extensions : Evidence from U.S. Counties / Klaus-Peter Hellwig. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students I use three decades of county-level data to estimate the effects of federal unemployment benefit extensions on economic activity. To overcome the reverse causality coming from the fact that benefit extensions are a function of state unemployment rates, I only use the within-state variation in outcomes to identify treatment effects. Identification rests on a differences-in-differences approach which exploits heterogeneity in county exposure to policy changes. To distinguish demand and supply-side channels, I estimate the model separately for tradable and non-tradable sectors. Finally I use benefit extensions as an instrument to estimate local fiscal multipliers of unemployment benefit transfers. I find (i) that the overall impact of benefit extensions on activity is positive, pointing to strong demand effects; (ii) that, even in tradable sectors, there are no negative supply-side effects from work disincentives; and (iii) a fiscal multiplier estimate of 1.92, similar to estimates in the literature for other types of spending. Mode of access: Internet Automatic Stabilizers imf Benefit Extension imf Fiscal Multiplier imf Labor Markets imf State UI Scheme imf IMF Working Papers; Working Paper ; No. 2021/070 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/070/001.2021.issue-070-en.xml IMF e-Library