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The macroeconomic effects of a pandemic in Europe - A model-based assessment

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  • Lars Jonung
  • Werner Roeger

Abstract

This report estimates possible macroeconomic effects of a pandemic taking place in the EU in 2006, using a quarterly macroeconomic model. The macroeconomic costs of a pandemic, that is the cost in terms of production lost due to illness and death measured as reductions in GDP growth and/or declines in the level of GDP, are quantified in various pandemic scenarios. We focus on two sectors of the European economy that are expected to be particularly severely hit, tourism and trade. The results are compared with those obtained in similar studies. Our basic conclusion is that, although a pandemic would take a huge toll in human suffering, it would most likely not be a severe threat to the European macroeconomy.

Suggested Citation

  • Lars Jonung & Werner Roeger, 2006. "The macroeconomic effects of a pandemic in Europe - A model-based assessment," European Economy - Economic Papers 2008 - 2015 251, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0251
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    References listed on IDEAS

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