IDEAS home Printed from https://ideas.repec.org/a/imx/journl/v16y2021i3a2.html
   My bibliography  Save this article

Expansionary Policy in Pandemics, a Dynamic Model Examination

Author

Listed:
  • Leopoldo Gómez-Ramírez

    (Universidad del Norte, Colombia)

  • Alexander Villarraga-Orjuela

    (Universidad del Norte, Colombia)

Abstract

El objetivo de este artículo es examinar el problema de las polóticas expansivas durante la pandemia en México. Para hacer eso, usamos un modelo dinámico de la interacción entre Covid-19 y la producción económica. Encontramos que las políticas expansivas son deseables pero que, solas, no pueden prevenir la aceleración de la pandemia. También modelamos políticas suplementarias, particularmente de salud pública, y encontramos que en su presencia las políticas económicas expansivas pueden poner a la economía en buen camino mientras que simultáneamente enfrentan a la pandemia. Las implicaciones de nuestro análisis son claras: políticas contracíclicas son deseables cuando existen otras políticas suplementarias. Una limitación de nuestro análisis es que está circunscrito al contexto de la economía mexicana. El artículo es una contribución original en la floreciente literatura sobre Covid-19 en México, porque es el primero que examina formalmente el problema de las políticas expansivas durante la pandemia. Nuestra conclusión es que tanto políticas expansivas como políticas suplementarias son necesarias para lograr una recuperación sostenible.

Suggested Citation

  • Leopoldo Gómez-Ramírez & Alexander Villarraga-Orjuela, 2021. "Expansionary Policy in Pandemics, a Dynamic Model Examination," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(3), pages 1-14, Julio - S.
    • Handle: RePEc:imx:journl:v:16:y:2021:i:3:a:2
    as

    Download full text from publisher

    File URL: https://www.remef.org.mx/index.php/remef/article/view/622
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Salas, Carlos & Quintana, Luis & Mendoza, Miguel Ángel & Valdivia, Marcos, 2020. "Distribución del ingreso laboral y la pobreza en México durante la pandemia de la Covid-19. Escenarios e impactos potenciales," El Trimestre Económico, Fondo de Cultura Económica, vol. 87(348), pages 929-962, octubre-d.
    2. Moreno-Brid, Juan Carlos & Ros, Jaime, 2009. "Development and Growth in the Mexican Economy: An Historical Perspective," OUP Catalogue, Oxford University Press, number 9780195371161.
    3. Jomo Kwame Sundaram, 2020. "Contener el contagio de Covid-19: lecciones comparativas," El Trimestre Económico, Fondo de Cultura Económica, vol. 87(348), pages 1059-1079, octubre-d.
    4. Francisco Cabrera-Hernández & Marí­a Padilla-Romo, 2020. "Hidden Violence: How COVID-19 School Closures Reduced the Reporting of Child Maltreatment," Working Papers 2020-02, University of Tennessee, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Gabriel Palma, 2011. "Forum 2011," Development and Change, International Institute of Social Studies, vol. 42(1), pages 87-153, January.
    2. David Escamilla-Guerrero, 2024. "All aboard! Railroad access and Mexico-US mass migration," Oxford Economic and Social History Working Papers _212, University of Oxford, Department of Economics.
    3. David Escamilla-Guerrero & Edward Kosack & Zachary Ward, 2023. "The Impact of Violence during the Mexican Revolution on Migration to the United States," NBER Working Papers 31531, National Bureau of Economic Research, Inc.
    4. James W. Bono & David H. Wolpert, 2009. "Statistical prediction of the outcome of a noncooperative game," Working Papers 2009-20, American University, Department of Economics.
    5. Prettyman, Alexa, 2024. "Underreporting child maltreatment during the pandemic: Evidence from Colorado," Children and Youth Services Review, Elsevier, vol. 156(C).
    6. Theodore Kahn & Zack Zimbalist, 2022. "Public investment versus government consumption: how FDI shocks shape the composition of subnational spending in Mexico," Review of International Political Economy, Taylor & Francis Journals, vol. 29(2), pages 502-537, March.
    7. Nora Lustig & Valentina Martinez Pabon & Guido Neidhöfer & Mariano Tommasi, 2020. "Short and Long-Run Distributional Impacts of COVID-19 in Latin America," Working Papers 2013, Tulane University, Department of Economics.
    8. Carlos A. Ibarra & Robert A. Blecker, 2016. "Structural change, the real exchange rate and the balance of payments in Mexico, 1960–2012," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(2), pages 507-539.
    9. Puyana, Alicia, 2012. "Mexican Agriculture and NAFTA: A 20-Year Balance Sheet," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 2(1), July.
    10. Pablo Mejía-Reyes & Reyna Vergara-González, 2017. "Are More Severe Recessions Followed by Stronger Early Expansions of Employment in the Mexican States?," The Review of Regional Studies, Southern Regional Science Association, vol. 47(3), pages 243-269, Fall.
    11. Pastor, Manuel & Wise, Carol, 2015. "Good-Bye financial crash, hello financial eclecticism: Latin American responses to the 2008–09 global financial crisis," Journal of International Money and Finance, Elsevier, vol. 52(C), pages 200-217.
    12. Jano-Ito, Marco A. & Crawford-Brown, Douglas, 2016. "Socio-technical analysis of the electricity sector of Mexico: Its historical evolution and implications for a transition towards low-carbon development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 567-590.
    13. Williams, Shanna & Bruer, Kaila C. & Evans, Angela D. & Price, Heather L., 2022. "The impact of COVID-19 on Canadian child maltreatment workers," Children and Youth Services Review, Elsevier, vol. 138(C).
    14. Carlos A. Ibarra, 2013. "Capital Flows and Private Investment in Mexico," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(3, Cierre), pages 65-99.
    15. Monroy-Gómez-Franco, Luis & Vélez-Grajales, Roberto & López-Calva, Luis F., 2022. "The potential effects of the COVID-19 pandemic on learnings," International Journal of Educational Development, Elsevier, vol. 91(C).
    16. Palma, J. & Pincus, J., 2022. "Is Southeast Asia falling into a Latin American style "middle-income trap"?," Cambridge Working Papers in Economics 2267, Faculty of Economics, University of Cambridge.
    17. Skott, Peter & Gómez-Ramírez, Leopoldo, 2018. "Credit constraints and economic growth in a dual economy," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 64-76.
    18. Eduardo Loría & Raúl Tirado, 2022. "Sacrifice rate and labour precariousness in Mexico, 2005Q1-2019Q4," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 41(87), pages 427-456, December.
    19. Becker, Julia-Maria, 2014. "The Impact of the Crisis of 2008 on Women`s and Men`s Income in Mexico," MPRA Paper 57964, University Library of Munich, Germany.
    20. Clarke, Damian & Larroulet, Pilar & Pailañir, Daniel & Quintana, Daniela, 2023. "Schools as Safety Nets: Break-Downs and Recovery in Reporting of Violence against Children," IZA Discussion Papers 15859, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Covid-19; expansionary policies; public health policies; México;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imx:journl:v:16:y:2021:i:3:a:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ricardo Mendoza (email available below). General contact details of provider: https://www.remef.org.mx/index.php/remef/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.