Business Cycle Accounting for the COVID-19 Recession

Daniel Gomes Fernandes ()
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Daniel Gomes Fernandes: Nova School of Business and Economics

Notas Económicas, 2022, issue 55, 47-66

Abstract: We apply the Business Cycle Accounting framework to the COVID-19 recession in the Euro Area and the United States of America. We conclude that the efficiency wedge had the most important role in the Euro Area, followed by the labor and investment wedges. In the United States, the labor wedge was most crucial, with the investment wedge coming in second. We present hypotheses, supported by our theoretical framework, for the dichotomy of the role of the efficiency wedge between the studied regions.

Keywords: COVID-19; business cycle accounting; macroeconomics; financial crises; financial frictions; wedges. (search for similar items in EconPapers)
JEL-codes: E32 E44 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:gmf:journl:y:2022:i:55:p:47:66

DOI: 10.14195/2183-203X_55_2

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