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Mexico. Socioeconomic Effects of Covid-19 and policy options: a Multisectoral Approach

Author

Listed:
  • Alan Hernández-Solano

    (Instituto de Investigaciones para el Desarrollo con Equidad - Universidad Iberoamericana)

  • Jhair López-López

    (National Research System)

  • Antonio Yúnez-Naude

    (El Colegio de México)

  • Yatziry Govea-Vargas

    (El Colegio de México)

Abstract

The health-care crisis due to the spread of Covid-19 has caused profound disruption on the Mexican economy and society. Our purpose in this paper is to contribute to the knowledge on the economic impacts the pandemic has had in Mexico and to evaluate social policy options to mitigate its effects. We do so based on a multisectoral-multiplier model and the most recent Social Accounting Matrix of Mexico, by which we estimate the direct and indirect impacts of Covid-19 as well the likely effects of two alternative policies aimed at mitigating these impacts: an unconditional cash transfer scheme for households living in poverty and the establishment of an insurance program for workers who have lost their jobs during the spread of the disease. We find that the former policy is superior to the latter since it alleviates more value added and income losses, as well as poverty incidence and inequality.

Suggested Citation

  • Alan Hernández-Solano & Jhair López-López & Antonio Yúnez-Naude & Yatziry Govea-Vargas, 2021. "Mexico. Socioeconomic Effects of Covid-19 and policy options: a Multisectoral Approach," Serie documentos de trabajo del Centro de Estudios Económicos 2021-04, El Colegio de México, Centro de Estudios Económicos.
    • Handle: RePEc:emx:ceedoc:2021-04
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    File URL: https://cee.colmex.mx/dts/2021/DT-2021-4.pdf
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    References listed on IDEAS

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    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance

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