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COVID-19 Crisis and the Association Between Inequality and Economic Growth

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  • Salim Chahine
  • Adam Chahine

Abstract

In this paper, we investigate the macroeconomic response to exogenous shocks, namely the COVID-19. We conjecture that the sensitivity of an economic system to an exogenous shock is endogenous on its characteristics and ability to counter a shock. We use the COVID-19 crisis as an exogenous shock, and we argue that a higher income inequality is likely to lead to a greater negative impact of an exogenous shock on economic growth. We validate our expectations using different inequality indexes. In further robustness tests, we confirm our conclusions using different proxies for economic conditions. JEL Codes: A10, I14, I15

Suggested Citation

  • Salim Chahine & Adam Chahine, 2024. "COVID-19 Crisis and the Association Between Inequality and Economic Growth," Journal of Interdisciplinary Economics, , vol. 36(2), pages 246-261, July.
    • Handle: RePEc:sae:jinter:v:36:y:2024:i:2:p:246-261
    DOI: 10.1177/02601079221142703
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    References listed on IDEAS

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    More about this item

    Keywords

    Inequality; economic growth; exogenous shock;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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