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The Economic Linkages of Covid-19 Across Sectors and Regions in the UK

Author

Listed:
  • Fidel Pérez-Sebastián

    (Universidad de Alicante)

  • Rafael Serrano-Quintero

    (Universitat de Barcelona)

Abstract

This paper builds a spatial model of trade with supply-chain links to try to understand the effect of economic links and policies on the spread of the Covid-19 pandemic during the first wave across NUTS2 UK regions. We find that the fight to reduce infection rates was more successful in the UK than in the European Union. Our results imply that without the policy reaction in Europe, the number of deaths during the first wave of the pandemic would have been about 4,400,000 larger in the European Union and about 1,217,000 higher in the UK, and that these benefits vary greatly across UK regions. Comparing the effects of the policies implemented in the EU27 and in the UK, we estimate that, in the absence of European-Union’s anti-Covid-19 measures, the number of deaths in the UK would have been an 80% larger; and that UK antiCovid-19 measures saved 50,000 lives in the European Union and 1,200,000 lives in the UK.

Suggested Citation

  • Fidel Pérez-Sebastián & Rafael Serrano-Quintero, 2024. "The Economic Linkages of Covid-19 Across Sectors and Regions in the UK," UB School of Economics Working Papers 2024/465, University of Barcelona School of Economics.
    • Handle: RePEc:ewp:wpaper:465web
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    File URL: http://hdl.handle.net/2445/207987
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    References listed on IDEAS

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    1. Dirk Krueger & Harald Uhlig & Taojun Xie, 2022. "Macroeconomic dynamics and reallocation in an epidemic: evaluating the ‘Swedish solution’," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(110), pages 341-398.
    2. Jérôme Adda, 2016. "Economic Activity and the Spread of Viral Diseases: Evidence from High Frequency Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 891-941.
    3. Glover, Andrew & Heathcote, Jonathan & Krueger, Dirk & Ríos-Rull, José-Víctor, 2023. "Health versus wealth: On the distributional effects of controlling a pandemic," Journal of Monetary Economics, Elsevier, vol. 140(C), pages 34-59.
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    More about this item

    Keywords

    Spatial Economics; Covid-19; first wave; policy response;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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