Rachel Yang

How did the economic trauma of the COVID-19 recession impact the health of the economy as measured by GDP?

Started Oct. 3, 2024

Abstract or project description

Rachel will explore how the change in the population due to COVID deaths if any affected the health of the economy by exploring impact on GDP.

In this research paper, I examine the impact of the COVID-19 recession on the health of the economy by measuring the consumption component of nominal gross domestic product (GDP). In the United States alone, the global pandemic led to the deaths of over 1.2 million individuals while also contributing to the layoffs of over 18 million individuals. Consequently, these changes in the labor force triggered a sharp contraction in economic activity; such effects could be observed in supply chains, consumer demand, and ultimately GDP which dropped significantly during the COVID-19 recession of 2020.

When designing my regression equation, I sought to analyze how the decline of certain age sectors in the labor force contributed to the overall decline of national output. In my regression, I group people in the labor force as young adults, ages 16-19; adults, ages 20-29; adults of prime working age, ages 30-45; and older adults, ages 46-65. More specifically, I observe how the global pandemic impacted each sector of our population in 2020 by comparing it with population data from preceding years—noting how the differences in each sector contributed to consumer spending. Accordingly, in my regression, I use GDP as my dependent variable and measures of population sectors as my independent variables. In order to mitigate potential biases or discrepancies within my data, I have also chosen to use savings rate and unemployment rate as my two control variables.