Unemployment and Public Budget Impacts of the Auto Bailout

Robert Baumann () and Andrea Thompson ()
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Andrea Thompson: Department of Economics, College of the Holy Cross

No 1504, Working Papers from College of the Holy Cross, Department of Economics

Abstract: We estimate the impact of the 2009 financial rescue of two large American automobile companies (General Motors and Chrysler) on unemployment in Michigan. We conservatively estimate that the auto bailout saved about 7,700 workers from unemployment each month over a period of four-and-a-half years. This translates to a public savings of between $1.3 and $1.6 billion via lower transfer payments and higher tax revenues.

Keywords: bailout; public finance; unemployment; automobile industry (search for similar items in EconPapers)
JEL-codes: E24 H12 H50 J65 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2015-08
New Economics Papers: this item is included in nep-mac and nep-pbe
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