scholarly journals COVID-19 and Emerging Markets

2020 ◽  
Vol 20 (133) ◽  
Author(s):  
Cem Cakmakli ◽  
Selva Demiralp ◽  
Sebnem Kalemli-Ozcan ◽  
Sevcan Yesiltas ◽  
Muhammed Yildirim
Keyword(s):  
Open Economy ◽  
Credit Card ◽  
Small Open Economy ◽  
Input Output ◽  
Economic Costs ◽  
Infection Rates ◽  
Demand Shock ◽  
Supply Shocks ◽  
Initial Shock ◽  
Macroeconomic Effects

We quantify the macroeconomic effects of COVID-19 for a small open economy by calibrating a SIR-multi-sector-macro model. We measure sectoral supply shocks utilizing teleworking and physical job proximity, and demand shocks with credit card purchases. Both shocks are also affected from changing infection rates under different lockdown scenarios. Being an open economy amplifies the economic costs through two main channels. First, the demand shock has domestic and external components. Second, the initial shock is magnified due to domestic and international input-output linkages.

After the Panic: Are Financial Crises Demand or Supply Shocks? Evidence from International Trade

2020 ◽  
Vol 2 (4) ◽  
pp. 509-526 ◽  
Author(s):  
Felipe Benguria ◽  
Alan M. Taylor
Keyword(s):  
Open Economy ◽  
Financial Crises ◽  
Aggregate Demand ◽  
Small Open Economy ◽  
Supply Side ◽  
Supply Shocks ◽  
Crisis Events ◽  
Empirical Tests ◽  
Negative Shock ◽  
Research And Policy

Are financial crises a negative shock to aggregate demand or supply? This is a fundamental question for research and policy making. Arguments for stimulus usually presume demand-side shortfalls; arguments for tax cuts or structural reform look to the supply side. Resolving the question requires models with both mechanisms, and empirical tests to tell them apart. We develop a small open economy model, where a country is subject to deleveraging shocks that impose binding credit constraints on households and/or firms. These financial crisis events leave distinct statistical signatures in the time series record that divide sharply between each type of shock. Empirical analysis reveals a clear picture: after financial crises the dominant pattern is that imports contract, exports hold steady or even rise, and the real exchange rate depreciates. History shows financial crises are predominantly a negative shock to demand. (JEL F14, F31, F41, G01, N10, N20, N70)

Economic Impact of the Health Sector on the Regional Level – Case of a Small, Open Economy

2021 ◽  
Vol 19 (3) ◽  
pp. 621-658
Author(s):  
Timotej Jagrič ◽  
Johnathan C. Mun ◽  
Christine Elisabeth Brown ◽  
Dusan Fister
Keyword(s):  
Open Economy ◽  
Missing Values ◽  
National Level ◽  
Small Open Economy ◽  
Health Sector ◽  
Value Added ◽  
Population Based ◽  
Regional Level ◽  
Input Output ◽  
Middle Income

A GRIT methodology (Generation of Regional Input-Output Tables) to generate and analyze regional input-output tables is applied for a small, middle-income nation, where the single national input-output table is partitioned into numerous regional tables. Missing values data are imputed using an evolutionary stochastic population-based nature-inspired optimization algorithm with self-adapting control parameters and exogenous superior data are introduced as well. A nonsurvey study is carried for each regional economy by computing various multipliers, such as output, income, value-added, employment, and import multipliers, and outlining financial properties, development, and interconnections of the various regions in Slovenia. Finally, the effects of financing the regional healthcare sectors are examined. Empirical evidence that healthcare industry sectors are extraordinarily important at the regional level and thus necessary to deliver a favorable impact on the national production of Slovenia in future, can be used for forthcoming economic policies planning at regional and national level.

scholarly journals Macroeconomic effects of unemployment benefits in small open economies: a stock–flow consistent approach

2018 ◽  
Vol 15 (3) ◽  
pp. 335-363
Author(s):  
Byrialsen Mikael Randrup ◽  
Hamid Raza
Keyword(s):  
Open Economy ◽  
Aggregate Demand ◽  
Small Open Economy ◽  
Unemployment Benefits ◽  
Trade Off ◽  
Unemployment Compensation ◽  
Key Variables ◽  
Macroeconomic Effects ◽  
Stock Flow ◽  
Compensation Rate

This paper attempts to analyse the macroeconomic effects of unemployment benefits in a small open economy. We adopt a stock–flow consistent (SFC) approach with an emphasis on the dynamics of the labour market. We numerically solve the model using a combination of estimation and calibration to generate statistics for our key variables, reflecting features of the Danish economy. We then analyse the effects of a fall in the unemployment compensation rate on the economy. The results indicate that a fall in the compensation rate at a macro level leads to a trade-off between a fall in aggregate demand and a rise in net exports. Due to this trade-off, the net effect of a fall in the compensation rate on the aggregate unemployment rate tends to be weak. Our analyses in this paper raise several questions on the existing views regarding unemployment benefits adopted by a large strand of the economic literature.

scholarly journals Credit Card Usage and Inflation: A Case Study of a Small Open Economy in Malaysia

2020 ◽  
Vol 54 (1) ◽  
pp. 19-32
Author(s):  
Zoey Jia Rou Wong ◽  
Tuck Cheong Tang
Keyword(s):  
Open Economy ◽  
Credit Card ◽  
Small Open Economy ◽  
Credit Card Usage
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