Recession and Recovery of the Pandemic

Lester C Hunt, Anqi Zhang and Shuonan Zhang
Additional contact information
Lester C Hunt: University of Portsmouth
Anqi Zhang: Fudan University

No 2022-05, Working Papers in Economics & Finance from University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group

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.

Keywords: COVID-19; SIR-macro model; testing; inequality (search for similar items in EconPapers)
JEL-codes: E1 H0 I1 (search for similar items in EconPapers)
Pages: 30
Date: 2022-06-21
New Economics Papers: this item is included in nep-dem, nep-hea and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.port.ac.uk/EconFinance/PBSEconFin_2022_05.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pbs:ecofin:2022-05

Access Statistics for this paper

More papers in Working Papers in Economics & Finance from University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group Portsmouth Business School Richmond Building Portland Street Portsmouth PO1 3DE United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by Shuonan Zhang ( this e-mail address is bad, please contact ).