Economic Effects of Covid-19 and Non-Pharmaceutical Interventions: applying a SEIRD-RBC Model to Italy

Giuli, Francesco and Maugeri, Gabriele (2022): Economic Effects of Covid-19 and Non-Pharmaceutical Interventions: applying a SEIRD-RBC Model to Italy.

Abstract

We study the economic effects generated by the proliferation of the Covid-19 epidemic and the implementation of non-pharmaceutical interventions by developing a SEIRD-RBC model, where the outbreak and policy interventions shape the labor input dynamic. We microfoundan Epidemic-Macro model grounded on the RBC tradition, useful for epidemic and economic analysis at business cycle frequency, which is able to reproduce the highly debated health-output trade-off. Assuming a positive approach, we show the potential of our model by matching the epidemic and macroeconomic empirical evidence of the Italian case.

• Item Type: MPRA Paper
• Language: English
• Keywords: Covid-19 pandemic; SIR-Macro model
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E23 - Production; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health

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