ERIC Number: ED294031
Record Type: RIE
Publication Date: 1988-Apr
Reference Count: N/A
A Simple Forecasting Model Linking Macroeconomic Policy to Industrial Employment Demand.
Malley, James R.; Hady, Thomas F.
A study detailed further a model linking monetary and fiscal policy to industrial employment in metropolitan and nonmetropolitan areas of four United States regions. The model was used to simulate the impacts on area and regional employment of three events in the economy: changing real gross national product (GNP) via monetary policy, holding the real compensation index across industries constant; changing the real compensation index in one industry, holding GNP and real compensation in the other three industries constant; and comparing the employment implications of varying levels of GNP growth. The simulations suggested that changes in monetary and fiscal policy have significantly different effects in different parts of the country. The magnitude of the employment impact on nonmetropolitan areas depended on assumptions about industrial composition and worker compensation. (Four data tables are appended.) (YLB)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Economic Research Service (USDA), Washington, DC. Agriculture and Rural Economics Div.