Rodríguez-Caballero, C.V.; Vera-Valdés, J.E. Long-Lasting Economic Effects of Pandemics:Evidence on Growth and Unemployment. Econometrics2020, 8, 37.
Rodríguez-Caballero, C.V.; Vera-Valdés, J.E. Long-Lasting Economic Effects of Pandemics:Evidence on Growth and Unemployment. Econometrics 2020, 8, 37.
This paper studies long economic series to assess the long-lasting effects of pandemics. We analyze if periods of time that cover pandemics have a change in trend and persistence in growth, and in level and persistence in unemployment. We find that there is an upward trend in the persistence level of growth across the centuries. In particular, shocks originated by pandemics in recent times seem to have permanent effect in growth. Moreover, our results show that the unemployment rate increases and it becomes more persistent after a pandemic. In this regard, our findings support the design and implementation of counter-cyclical policies to soften the shock of the pandemic.
long memory; persistence; structural change; pandemics; growth; and unemployment
SOCIAL SCIENCES, Econometrics & Statistics
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.