Recession and recovery from the pandemic

Lester Hunt, Anqi Zhang , Shuonan Zhang *

*Corresponding author for this work

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Abstract

We develop an SIR-macroeconomic model with virus detection and inequality to study their implications for economic and health consequences during a pandemic crisis. We find a two-way relationship between the pandemic recession and inequality that exacerbate each other although such a vicious circle could be broken by accurate and extensive testing. This mitigation effect can be improved given complementary arrangements such as social protection. The extensive virus detection could not only be a better alternative intervention to lock-down to break the “life-or-economy” trade-off, but also prevent the economy to be permanently damaged if there is reinfection.
Original languageEnglish
Article number100117
Number of pages18
JournalResearch in Globalization
Volume6
Early online date10 Feb 2023
DOIs
Publication statusPublished - 1 Jun 2023

Keywords

  • COVID-19
  • SIR-macro model
  • Testing
  • Inequality

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