Covid-19 as an Economic Shock: Evidence from the US Pharmaceutical Industry (S. Boni and F. Ravazzolo)

Speaker:  Francesco Ravazzolo - Università di Bolzano
  Wednesday, February 16, 2022 at 12:00 PM In presenza + Zoom Webinar

This paper attempts to quantify the effects of the economic shock triggered by Covid-19 in the US pharmaceutical industry. To this aim, a structural vector autoregressive model identified with a minimum set of sign restrictions dictated by economic theory and recent market developments has been estimated. We show that the economic shock triggered by Covid-19 coexists with supply, demand, financial, and investment shocks, and we assess its impact on different macroeconomic variables depicting the US pharmaceutical sector. We find that the supply shock caused by Covid-19 in the US pharmaceutical industry increased the industrial production while decreasing producer prices and unemployment rate in the US pharmaceutical industry, which, according to the model’s prediction, holds in the long-run.Join Zoom Meeting

Programme Director
Francesca Rossi

Publication date
December 22, 2021