The study looked at how unemployment insurance (UI) benefits can help people smooth out their spending when they lose their job. By analyzing data from 1968 to 1987, the researchers found that a 10% increase in UI benefits led to a 2.7% smaller drop in spending for unemployed individuals. This means that without UI, people would have cut their spending by over three times as much. However, the positive effect of UI only lasts for one period and doesn't permanently change spending habits. People who expect to lose their job also see less benefit from UI, and it may reduce the use of other public insurance programs. Overall, the study suggests that higher UI benefits can help people during job loss, but the best benefit level depends on how much risk someone is willing to take.