Business Cycle Accounting for the COVID-19 Recession

Authors

  • Daniel Fernandes NOVA School of Business and Economics

DOI:

https://doi.org/10.14195/2183-203X_55_2

Keywords:

Economics, COVID-19, Business Cycle Accounting, Macroeconomics, Financial Crises, Financial Frictions, Wedges

Abstract

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 the 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.

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Published

2022-12-07

Issue

No. 55 (2022)

Section

Articles

License

Copyright (c) 2022 Notas Económicas

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows sharing the work with recognition of authorship and initial publication in Antropologia Portuguesa journal.