The COVID‐19 pandemic: shocks to human capital and policy responses

Guichuan Deng, Jing Shi, Yanli Li*, Yin Liao

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)


The COVID‐19 pandemic is significantly disrupting human capital in labour markets. Workforce reductions cause firm outputs to fall and prices to rise, leading to unprecedented economic costs. To quantify the economic costs, we develop a dynamic general equilibrium macroeconomic model that incorporates susceptible–infectious–recovered epidemiology dynamics, where individuals can be healthy, infected or recovered so that evolution of human capital can be well tracked. We characterise optimal public policy responses to the decline in human capital by either isolating susceptible residents from infected residents to reduce the spread of disease or increases in government spending to improve the recovery and death rates.
Original languageEnglish
Pages (from-to)5613-5630
Number of pages18
JournalAccounting & Finance
Issue number4
Early online date10 Mar 2021
Publication statusPublished - Dec 2021


  • COVID-19
  • Economic benefit
  • Economic policy
  • Human capital
  • Public policy


Dive into the research topics of 'The COVID‐19 pandemic: shocks to human capital and policy responses'. Together they form a unique fingerprint.

Cite this