COVID-19 and Emerging Markets: An Epidemiological Model with International Production Networks and Capital Flows

COVID-19 and Emerging Markets: An Epidemiological Model with International Production Networks and Capital Flows
READ MORE...
Volume/Issue: Volume 2020 Issue 133
Publication date: July 2020
ISBN: 9781513550183
$18.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
Paperback
PDF
ePub
English
Prices in red indicate formats that are not yet available but are forthcoming.
Summary

We quantify the macroeconomic effects of COVID-19 for a small open economy by calibrating a SIR-multi-sector-macro model. We measure sectoral supply shocks utilizing teleworking and physical job proximity, and demand shocks with credit card purchases. Both shocks are also affected from changing infection rates under different lockdown scenarios. Being an open economy amplifies the economic costs through two main channels. First, the demand shock has domestic and external components. Second, the initial shock is magnified due to domestic and international input-output linkages.