Business cycle for the Covid-19 recession

We apply the Business Cycle Accounting framework to the COVID-19 recession in the Euro Area and the United States. We conclude that the efficiency wedge had the most important role in the Euro Area, followed by the labor and investment wedges. In the United States, the labor wedge was most crucial,...

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Bibliographic Details
Main Author: Fernandes, Daniel Gomes (author)
Format: masterThesis
Language:eng
Published: 2022
Subjects:
Financial crises
Macroeconomics
Business cycles
Business cycle accounting
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
Online Access:http://hdl.handle.net/10362/142250
Country:Portugal
Oai:oai:run.unl.pt:10362/142250
Description
Summary:We apply the Business Cycle Accounting framework to the COVID-19 recession in the Euro Area and the United States. We conclude that the efficiency wedge had the most important role in the Euro Area, followed by the labor and investment wedges. In the United States, the labor wedge was most crucial, with the investment wedge taking a second place. We present hypotheses, supported by our theoretical framework, for the dichotomy of the role of the efficiency wedge between the studied regions.Keywords:Economics,COVID-19, Business Cycle Accounting, Macroeconomics, Financial Crises, Financial Frictions, Wedges

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