COVID-19 Crisis and the Association Between Inequality and Economic Growth

Salim Chahine and Adam Chahine

Journal of Interdisciplinary Economics, 2024, vol. 36, issue 2, 246-261

Abstract: In this paper, we investigate the macroeconomic response to exogenous shocks, namely the COVID-19. We conjecture that the sensitivity of an economic system to an exogenous shock is endogenous on its characteristics and ability to counter a shock. We use the COVID-19 crisis as an exogenous shock, and we argue that a higher income inequality is likely to lead to a greater negative impact of an exogenous shock on economic growth. We validate our expectations using different inequality indexes. In further robustness tests, we confirm our conclusions using different proxies for economic conditions. JEL Codes: A10, I14, I15

Keywords: Inequality; economic growth; exogenous shock (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jinter:v:36:y:2024:i:2:p:246-261

DOI: 10.1177/02601079221142703

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