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An Estimation of the Economic Impact of Three Covid-19 Stimulus Packages

Johansson, Pontus LU and Hederén, Samuel (2020) NEKN01 20201
Department of Economics
Abstract (Swedish)
This paper evaluates the effects of the economic reactions to the coronavirus crisis in
Sweden, the United Kingdom and the United States of America. By using a structural
vector autoregressive model we find the effect of a change in government spending, tax
revenue and interest rates on GDP and unemployment. By calculating the effect found
in historic data, we can estimate how the corona stimulus packages affect the economies
of these three countries. Our results questions traditional theory, by indicating that
increased government spending and tax cuts will have a negative effect on the economy.
Meanwhile, stimulus in the form of cutting the interest rate will positively effect the
economy.
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author
Johansson, Pontus LU and Hederén, Samuel
supervisor
organization
course
NEKN01 20201
year
type
H1 - Master's Degree (One Year)
subject
keywords
Corona, covid-19, monetary policy, fiscal policy, stimulus, stimulus package, Sweden, USA, United Kingdom, VAR, impulse response, policy evaluation
language
English
id
9030261
date added to LUP
2020-12-07 10:49:09
date last changed
2020-12-07 10:49:09
@misc{9030261,
  abstract     = {This paper evaluates the effects of the economic reactions to the coronavirus crisis in
Sweden, the United Kingdom and the United States of America. By using a structural
vector autoregressive model we find the effect of a change in government spending, tax
revenue and interest rates on GDP and unemployment. By calculating the effect found
in historic data, we can estimate how the corona stimulus packages affect the economies
of these three countries. Our results questions traditional theory, by indicating that
increased government spending and tax cuts will have a negative effect on the economy.
Meanwhile, stimulus in the form of cutting the interest rate will positively effect the
economy.},
  author       = {Johansson, Pontus and Hederén, Samuel},
  keyword      = {Corona,covid-19,monetary policy,fiscal policy,stimulus,stimulus package,Sweden,USA,United Kingdom,VAR,impulse response,policy evaluation},
  language     = {eng},
  note         = {Student Paper},
  title        = {An Estimation of the Economic Impact of Three Covid-19 Stimulus Packages},
  year         = {2020},
}