Health Accelerator and Financial Frictions in Macroeconomic Modelling

Bibliographic Data

ID16913965
AuthorsFirano Zakaria (0000-0002-0454-6217, Mohammed V University, corresponding author), Filali Adib Fatine (Mohammed V University)
Year2025
Volume15
Issue1
Publication date2025-01-01
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440251325304
OpenAlexW4408769765
LanguageEN
References cited28

In this paper, we have developed a new approach to macroeconomic modelling by proposing to introduce the agent’s behaviour in a pandemic situation. In the form of health frictions that alter the economic agent’s behaviour in crisis situations, we have set up a DSGE model whose behavioural functions take into account the existence of healthy and infected populations. The novelty of this work is the inclusion of the two frictions; health and financial, the idea is to succeed in describing the macro-financial dynamics in a pandemic situation. The results obtained confirm the existence of a health accelerator that amplifies macroeconomic shocks. JEL classification: G21, G28, E42, E32

Business · Dynamic stochastic general equilibrium · Economics · Financial accelerator · Financial system · Macroeconomics · Monetary policy · Global Health Care Issues · Market Dynamics and Volatility · Monetary Policy and Economic Impact · Finance

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Open DOIOpen Access