READING LIST

The Covid-19 Economy

The Paycheck Protection Program, Meant to Prevent Mass Layoffs, Missed Its Target

A new study shows that CARES Act funds to support small companies and prevent mass layoffs did not flow to areas more adversely affected by the pandemic. For example, 15 percent of establishments in the regions most...

How Are Americans Coping With the Covid-19 Crisis? 7 Key Findings From a Household Survey

New research from the Rustandy Center and the Poverty Lab at the University of Chicago finds that lower-income Americans, especially women, were more likely to lose their income in the first month of the crisis. Low-income households...

Piketty on the Covid-19 Crisis: “It Is High Time to Use This Opportunity to Counter the Dominant Ideology and Significantly Reduce Inequality”

In an interview with ProMarket, Thomas Piketty speaks about his new book, the role of ideology as a driver of inequality, and what the Covid-19 crisis teaches us about our present-day "inequality regime."

How Inequality Hurts the Economy and Complicates Policy Responses to the Pandemic

In the years leading up to the pandemic, rising inequality created a saving glut of the rich which pushed down interest rates and fueled a large rise in government and household debt. But with interest rates now...

How to Save 40 percent of the Payroll Protection Program’s Costs

Thanks to the loan program part of the CARES Act, small businesses can receive up to 2.5 times their monthly payroll, regardless of how much their business is affected. The program ran out of money in 13 days. Need-based loan...

Financial Trust Index, Covid-Edition: The CDC Is the Most Trusted Institution in America

A special wave of the Booth/Kellogg Financial Trust Index shows a high level of compliance with social distancing guidelines and stay-at-home orders. Approximately 45 percent of respondents believe that the cost of the lockdown is higher than the potential...

How Has the Covid-19 Crisis Affected Hourly Workers at Small Businesses?

Since the coronavirus crisis began, firms have dramatically reduced employee hours. By March 28, total hours declined over 70 percent in states with the earlier stay-at-home orders. A new study finds that hours reductions are primarily explained by firm...

Trump Voters Were More Reluctant to Acknowledge the Seriousness of the Pandemic and Adapt Their Behavior Accordingly

Using data on individuals' search behavior and cellphone movement data, a new study shows that areas with a high share of Trump voters began to worry about the Covid-19 outbreak only after prominent Republicans like Ted Cruz got infected....

Covid Economics: The Marcoeconomic Impact of the Pandemic and Policy Responses

ProMarket reviews the most recent and interesting academic papers on the ongoing pandemic: One paper argues that people do not always fully internalize the effect of their decisions on the spread of the virus. Another analyzes the possibility that supply...

Covid Economics: During 1918 Influenza, Severe Social Distancing Reduced Negative Impacts on American Economy

ProMarket reviews the most recent and interesting academic papers on the ongoing pandemic: Sergio Correia, Stephan Luck, and Emil Verner studied how US cities and states reacted to the 1989-1919 influenza pandemic. They find that states with similar economies but...