Published in European Economic Review
In a representative sample of the U.S. population during the first summer of the COVID-19 pandemic, we investigate how prosociality and ideology interact in their relationship with health-protecting behavior and trust in the government to handle the crisis. We find that an experimental measure of prosociality based on standard economic games positi...
Published in European economic review
We estimate the euro area output gap by applying the Beveridge-Nelson decomposition based on a large Bayesian vector autoregression. Our approach incorporates multivariate information through the inclusion of a wide range of variables in the analysis and addresses data issues associated with the COVID-19 pandemic. The estimated output gap lines up ...
Published in European Economic Review
We simulate the fiscal stimulus package set up by the German government to alleviate the costs of the COVID-19 pandemic in a dynamic New Keynesian multi-sector general equilibrium model. We find that, cumulated over 2020–2022, output losses relative to steady state can be reduced by more than 6 PP. On average, welfare costs of the pandemic can be m...
Published in European Economic Review
Published in European Economic Review
Governments have implemented school closures and online learning as one of the main tools to reduce the spread of Covid-19. Despite the potential benefits in terms of containment of virus diffusion, the educational costs of these policies may be dramatic. This work identifies these costs, expressed as decrease in test scores, for the whole universe...
Published in European Economic Review
We provide a novel modeling framework to decompose euro area sovereign bond yields into five distinct components: ( i ) expected future short-term risk-free rates and a term premium, ( i i ) a default risk premium, ( i i i ) redenomination risk premium, ( i v ) liquidity risk premium, and ( v ) segmentation (convenience) premium. Identification is ...
Published in European economic review
Risks related to the coronavirus infection differ significantly across the age and the health status of individuals which suggest lockdowns targeting the unhealthy could reduce the fatalities due to the pandemic. In addition, labor productivities differ significantly across these groups, which suggest the economic consequences of targeted lockdowns...
Published in European Economic Review
The COVID-19 pandemic has led to an increase in public debt in most countries, and the Ukraine war is likely to have similar effects. This will increase fiscal pressure in the future. We study how the shape of the optimal nonlinear income tax schedule is affected by this increase. We calibrate the workhorse optimal income tax model to five European...
Published in European Economic Review
We incorporate age-specific socio-economic interactions in a SIR macroeconomic model to study the role of demographic factors for the COVID-19 epidemic evolution, its macroeconomic effects and possible containment measures. We capture the endogenous response of rational individuals who choose to reduce inter- and intra-generational social interacti...
Published in European Economic Review
This paper investigates the effects of the pandemic containment periods in France on individuals’ movements, expenditure and adaptation to the shock, using billions of French bank card transactions measured before and during the COVID-19 pandemic. We measure not only the effect on consumer expenditure, but also on quantities directly related to the...
