Distributional effects of macroeconomic shocks in real-time: A novel method applied to the COVID-19 crisis in Germany.

ABSTRACT: The highly dynamic nature of the COVID-19 crisis poses an unprecedented challenge to policy makers around the world to take appropriate income-stabilizing countermeasures. To properly design such policy measures, it is important to quantify their effects in real-time. However, data on the relevant outcomes at the micro level is usually only available with considerable time lags. In this paper, we propose a novel method to assess the distributional consequences of macroeconomic shocks and policy responses in real-time and provide the first application to Germany in the context of the COVID-19 pandemic. Specifically, our approach combines different economic models estimated on firm- and household-level data: a VAR-model for output expectations, a structural labor demand model, and a tax-bene

SUBMITTER: Bruckmeier K 

PROVIDER: S-EPMC8452132 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature