ABSTRACT
This paper explores the impact on the macroeconomy for certain OECD economies exposed to the COVID-19 pandemic shock. The analysis employs a panel of OECD countries, spanning the period March 2020 to January 2021. It also uses two proxies for the COVID-19 shocks: i) total confirmed incidences/cases and ii) total deaths while using the Bayesian Panel Vector Autoregressive (BPVAR) method. The findings document that the COVID-19 shock exerts a strong negative effect on industrial production. Considering how such epidemic shocks affect the expectations of economic participants, the paper questions their absence in accounting for forthcoming growth-related incidences.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 Who uses a Panel Vector Autoregression (Panel VAR) framework.
2 Apergis and Apergis (Citation2018).
3 Apergis and Apergis (Citation2017), Apergis and Apergis (Citation2020).