How to introduce health frictions within the statistical framework of macroeconomic and financial modelling?
Category: International Statistical Institute
Abstract
One of the lessons of the Covid-19 health crisis is the relevance of taking into account health frictions which can lead to a change in the behavior of economic agents and allow a new situation of macroeconomic equilibrium. As such, econometric and statistical modeling tools must adapt to this type of friction or shock in order to take into account future uncertainties.
In this sense, this session proposes a new approach to modeling health frictions with several lines of research articulated around three main axes, namely: a readjustment of the statistical framework to take health effects into account, a re-reading of macroeconomic modeling to macroeconomic foundation in order to take into account the health elements that can lead to frictions and rigidities in behavior. Finally, the last axis of analysis is likely to describe the new links to be established in a health crisis situation and how the tools at our disposal can respond with the aim of identifying these new transmission channels.