Discussion Papers 2021

CIRJE-F-1162	"A First Aid Kit to Assess Welfare Impacts"
Author Name	Kawata, Keisuke and Yasuhiro Sato
Date	April 2021
Full Paper	PDF file
Remarks

Abstract
We develop a simple framework to measure the impacts of an economic shock on unemployed workers' welfare quantitatively. We follow the sufficient statistics approach in consulting traditional economic models, and use a standard job search model to derive the sufficient statistics to identify the impacts. We then apply our framework to assess the impacts of the coronavirus disease 2019 (COVID-19) by using regional data of the United States and Japan, and international data. Analysis reveals the regions and countries that are severely damaged by the COVID-19.
Key Words: Sufficient statistics, Job search models, Welfare impacts, COVID-19

Abstract

We develop a simple framework to measure the impacts of an economic shock on unemployed workers' welfare quantitatively. We follow the sufficient statistics approach in consulting traditional economic models, and use a standard job search model to derive the sufficient statistics to identify the impacts. We then apply our framework to assess the impacts of the coronavirus disease 2019 (COVID-19) by using regional data of the United States and Japan, and international data. Analysis reveals the regions and countries that are severely damaged by the COVID-19.

Key Words: Sufficient statistics, Job search models, Welfare impacts, COVID-19