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Macroeconomic Outcomes and COVID-19: A Progress Report

Author

Listed:
  • Jesus Fernandez-Villaverde

    (University of Pennsylvania)

  • Charles I. Jones

    (Stanford University)

Abstract

This paper combines data on GDP and unemployment and from Google's COVID-19 Community Mobility Reports with data on deaths from COVID-19 to study the macroeconomic outcomes of the pandemic. We present results from an international perspective using data at the country level as well as results for individual US states and key cities throughout the world. The data from these different levels of geographic aggregation offer a remarkably similar view of the pandemic despite the substantial heterogeneity in outcomes. Countries like South Korea, Japan, Germany, and Norway and cities such as Tokyo and Seoul have comparatively few deaths and low macroeconomic losses. At the other extreme, New York City, Lombardy, the United Kingdom, and Madrid have many deaths and large macroeconomic losses. There are fewer locations that seem to succeed on one dimension but suffer on the other, but these include California and Sweden. The variety of cases potentially offers useful policy lessons regarding how to use non-pharmaceutical interventions to support good economic and health outcomes.

Suggested Citation

  • Jesus Fernandez-Villaverde & Charles I. Jones, 2020. "Macroeconomic Outcomes and COVID-19: A Progress Report," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(3 (Fall)), pages 111-166.
    • Handle: RePEc:bin:bpeajo:v:51:y:2020:i:2020-03:p:111-166
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    More about this item

    Keywords

    COVID-19; public health; US economy; GDP; unemployment;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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