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COVID-19 epidemic and generational welfare

Author

Listed:
  • Francesco Giuli
  • Giuseppe Ciccarone

    (Sapienza University of Rome)

  • Enrico Marchetti

    (University of Naples Parthenope)

Abstract

We study the effects of COVID-19, and the ensuing lockdown and scal policies, on the welfare of different age-groups within a life-cycle macroeconomic scheme, adapted from Gertler (1999), where the pandemic is represented as a shock to the mortality rate. We obtain two main results. First, we can show that lockdown policies have a negative impact on the dynamics of economic welfare of younger agents relative to that of older agents, thus providing analytical support to the idea that the management of the COVID-19 pandemic through lockdown policies has hit mainlythe young generations. Second, we show that expansionary scal policies aimed at supporting income after the lockdown a¤ect the relative welfare index of age-groups mainly through the repayment scheme of the consequent public debt; the more the repayment scheme entails a postponement of the debt repayment, the more older agents are favored (in relative terms).

Suggested Citation

  • Francesco Giuli & Giuseppe Ciccarone & Enrico Marchetti, 2021. "COVID-19 epidemic and generational welfare," Departmental Working Papers of Economics - University 'Roma Tre' 0260, Department of Economics - University Roma Tre.
    • Handle: RePEc:rtr:wpaper:0260
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    More about this item

    Keywords

    Covid19; Generational Effects; Containment Policies;
    All these keywords.

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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