Modelling the impact of Covid-19 on the UK economy: an application of a disaggregated New-Keynesian model

Cyrille Lenoel and Garry Young

No 531, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: We set out a framework that can be used to evaluate policies intended to mitigate the economic effects of Covid-19. In our framework shocks that affect only certain sectors can spill over to other sectors because of input-output linkages and limited income insurance. We show that policies such as the furlough scheme can prevent the sharp rises in unemployment that might arise in the absence of the scheme, and illustrate how such policies can be evaluated using the framework.

Keywords: Covid-19; recession; sectoral model; input-output (search for similar items in EconPapers)
JEL-codes: E00 E12 E20 E23 E24 E30 E52 E60 E62 (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-dge, nep-ias, nep-isf and nep-mac
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:531

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