Kritische Blicke auf die Coronakrise und ihre Folgen
Kritische Blicke auf die Coronakrise und ihre Folgen

Lessons from the “Spanish flu” for the impact of Covid-19.

Robert J. Barro, José F. Ursua, Joanna Weng: The Coronavirus and the Great Influenza Epidemic. Lessons from the “Spanish Flu” for the Coronavirus’s Potential Effects on Mortality and Economic Activity, in: NBER Working Paper Series, Working Paper 26866, March/April 2020.

According to the authors of this paper, mortality and economic contraction during the 1918-1920 Great Influenza Pandemic provide plausible upper bounds for outcomes under the coronavirus (COVID-19). Data for 48 countries imply flu-related deaths in 1918-1920 of 40 million, 2.1 percent of world population, implying 150 million deaths when applied to current population. Regressions with annual information on flu deaths 1918-1920 and war deaths during WWI imply flu-generated economic declines for GDP and consumption in the typical country of 6 and 8 percent, respectively. There is also some evidence that higher flu death rates decreased realized real returns on stocks and, especially, on short-term government bills.

Link to the article on the National Bureau of Economic Research (NBER) site.

Download link to the PDF file of the article on the National Bureau of Economic Research (NBER) site.