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Disentangling the economic effects of Brexit and COVID-19 in the UK

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  • Bülte, Christopher
  • Buse, Rebekka

Abstract

We quantify the economic costs in the UK since the Brexit referendum and discern them from the effects of the COVID-19 pandemic. The simultaneous effects of COVID-19 and Brexit are disentangled by evaluating pandemic-related indices relative to economic losses. These losses are measured with a synthetic control method, allowing for a causal interpretation of Brexit. We demonstrate that the UK has suffered exceptionally during the pandemic and that these additional losses are attributed to the long-term economic effects of Brexit.

Suggested Citation

  • Bülte, Christopher & Buse, Rebekka, 2025. "Disentangling the economic effects of Brexit and COVID-19 in the UK," Working Paper Series in Economics 174, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    • Handle: RePEc:zbw:kitwps:329635
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    References listed on IDEAS

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    5. Reinhold Kosfeld & Timo Mitze & Johannes Rode & Klaus Wälde, 2021. "The Covid‐19 containment effects of public health measures: A spatial difference‐in‐differences approach," Journal of Regional Science, Wiley Blackwell, vol. 61(4), pages 799-825, September.
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    JEL classification:

    • H0 - Public Economics - - General
    • I1 - Health, Education, and Welfare - - Health

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