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COVID-19 pandemic through the lens of Leontief multipliers for Emerging Economies

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  • César Carrera

Abstract

Coronavirus has been one of the strongest shocks that the World has suffered from in a long time. Its effects tend to dominate the modeling strategists in order to evaluate policy making decisions in terms of economic growth, inflation, or poverty. The discussion in the literature focuses on the nature of the shock, if it is either a demand or a supply shock. I argue that one way to approach this problem is by using input-output tables, based on Leontief multipliers. Following this approach, a shock to one sector, spillover to others by the required intermediate demand for products that are needed for other sectors in order to produce a final good or service. I find that trade and services have higher responses and spread to other sectors which implies a higher order of losses for a Covid shock.

Suggested Citation

  • César Carrera, 2023. "COVID-19 pandemic through the lens of Leontief multipliers for Emerging Economies," Working Papers 193, Peruvian Economic Association.
    • Handle: RePEc:apc:wpaper:193
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    Keywords

    Demand and supply shock; Input-output table; Covid;
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