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Economic Effects of Covid-19 and Non-Pharmaceutical Interventions: applying a SEIRD-RBC Model to Italy

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  • Giuli, Francesco
  • Maugeri, Gabriele

Abstract

We study the economic effects generated by the proliferation of the Covid-19 epidemic and the implementation of non-pharmaceutical interventions by developing a SEIRD-RBC model, where the outbreak and policy interventions shape the labor input dynamic. We microfoundan Epidemic-Macro model grounded on the RBC tradition, useful for epidemic and economic analysis at business cycle frequency, which is able to reproduce the highly debated health-output trade-off. Assuming a positive approach, we show the potential of our model by matching the epidemic and macroeconomic empirical evidence of the Italian case.

Suggested Citation

  • Giuli, Francesco & Maugeri, Gabriele, 2022. "Economic Effects of Covid-19 and Non-Pharmaceutical Interventions: applying a SEIRD-RBC Model to Italy," MPRA Paper 114673, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114673
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    References listed on IDEAS

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    More about this item

    Keywords

    Covid-19 pandemic; SIR-Macro model;

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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