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Struggling the pandemic crises as a global public good: the economic implications of pandemics

Year 2020, Volume: 13 Issue: 4, 758 - 775, 01.10.2020
https://doi.org/10.25287/ohuiibf.730281

Abstract

Public goods which have the features of nonrivalry in consumption and nonexcludability have positive externalaties spreading the large masses, and also cover negative externalaties (public bads) not to damage the environment, health and so on. Cross-border spillover effects of externalaties actually make the public goods convert to global public goods. In this sense, struggling the pandemics is a most crucial global public good which does not only impact human life but also prevents the collapse of national economies. Pandemics slow the pace of economic growth as well as increasing the loss of workforce. Governments employ a balance between the increase in spread of disease and mortality, and economic stability. This paper attempts to explain the whole story of the pandemics and their economic implications by giving examples from literature. Main finding resulted from the papers written on this issue is that pandemics exacerbate the national economies through different channels. Developed and developing countries should take the pandemics into account as a regressive power or obstacle in front of economic growth and stability of state budgets, strongly collaborate against pandemic as a naturel disaster, support their healthcare systems and be ready for these kinds of disasters.

References

  • Alfaro, L, Chari, A., Greenland , A. N. & Schott, P. K. (2020). Aggregate and Fırm-Level Stock Returns During Pandemics, in Real Time, NBER Working Paper Series, No: 26950, https://www.nber.org/papers/w26950.pdf (05.04.2020).
  • Arsan, H. Ü. (1992). ‘‘Kamu Maliyesi Alanında Yeni Bir İnceleme Konusu: Uluslararası Kamusal Mallar’’, Ankara Üniversitesi S. B. F. Dergisi, C. 47, S. 1
  • Atkeson, A. (2020). What will be the Economic Impact of Covıd-19 in the US? Rough Estimates of Disease Scenarios, NBER Working Paper Series, No: 26867, https://www.nber.org/papers/w26867.pdf (05.04.2020).
  • Baker, S. R., Farrokhnia, R.A., Meyer, S., Pagel, M. & Yannelis, C. (2020). How Does Household Spending Respond to an Epidemic? Consumption During the 2020 COVID-19 Pandemic, NBER Working Paper Series, No: 26949, https://www.nber.org/papers/w26949.pdf (15.04.2020).
  • Barro, R. J. & Ursúa, J. F. (2012). Rare Macroeconomic Disasters, Annual Review of Economics, Vol. 4, pp. 83-109, https://www.jstor.org/stable/42949932 (12.04.2020).
  • Barro, R. J., Ursúa, J. F. & Weng, J. (2020). The Coronavirus and the Great Influenza Pandemic: Lessons from the “Spanish Flu” for the Coronavirus’s Potential Effects On Mortality and Economic Activity, NBER Working Paper Series, No: 26866, https://www.nber.org/papers/w26866.pdf (15.04.2020).
  • Barrot, J. N., Grassi, B. & Sauvagnat, J. (2020). Sectoral Effects of Social Distancing, Centre for Economic Policy Research, Issue 3, pp. 89-107, https://cepr.org/sites/default/files/news/CovidEconomics3.pdf (15.04.2020).
  • Beutels, P., Jia, N., Zhou, QY., Smith, R., Cao, WC., & de Vlas, S. J. (2009). The economic impact of SARS in Beijing, China, Tropical Medicine and International Health, Vol 14. Issue I, pp. 85-91. https://onlinelibrary.wiley.com/doi/epdf/10.1111/j.1365-3156.2008.02210.x (15.04.2020).
  • Bloom, D. E. & Mahal, A. S. (1997). Does The AIDS Epidemic Threaten Economic Growth?, Journal of Econometrics, 77, pp. 105-124.
  • Boucekkine, R., Diene, B. & Azomahou, T. (2008). Growth Economics of Epidemics: A Review of the Theory, Mathematical Population Studies, Vol. 15, Issue:1, pp.1-26,
  • Chen, WC., Huang, A. S., Chuang, JH., Chiu, CC., & Kuo, HS (2011). Social And Economic Impact of School Closure Resulting From Pandemic Influenza A/H1N1, Journal of Infection, 62, pp. 200-203.
  • Chen, L. C., Evans, T. G. & Cash, R. A. (1999). Health As A Global Public Good, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (284-304), New York: Oxford University Press.
  • Claessens, S. & Forbes, K. (2001). International financial contagion: An overview of the issues and the book. In S. Claessens & K. Forbes (Eds), International financial contagion (pp. 3 18). Dordrecht and London: Kluwer.
  • Erdoğdu, M. M. (2006). Küresel Kolektif Varlıklar, Finansman Problemleri ve Düzeltici Vergileme Temelli Çözüm Yolları, Marmara Üniversitesi İ.İ.B.F. Dergisi, C. XXI, S.I, ss. 269-295.
  • Freire, S. (2004). Impact of HIV/AIDS on Saving Behaviour in South Africa, Forum Paper, 13–15 October 2004, https://pdfs.semanticscholar.org/5267/47656af2ebaf4c279bd6814f30f36a38f90a.pdf?_ga=2.79497297.478059263.1588126441-490337133.1579866999 (05.04.2020).
  • Frost, W. H. (1920). Statistics Of Influenza Morbidity: With Special Reference To Certain Factors in Case Incidence and Case Fatality, Public Health Reports (1896-1970), Vol. 31, No. 11, https://www.jstor.org/stable/4575511 (12.04.2020).
  • Fuller, F., Fabiosa, J. & Premakumar, V. (1997). World Trade Impacts of Foot and Mouth Disease in Taiwan, Briefing Paper 97-BP 16.
  • Garrett, T. A. (2007). Economic Effects of the 1918 Influenza Pandemic Implications for a Modern-day Pandemic, Federal Reserve Bank of St. Louis, https://www.stlouisfed.org/~/media/files/pdfs/community-development/research-reports/pandemic_flu_report.pdf (15.04.2020).
  • Herlihy, D. (1997). The Black Death and the Transformation of the West, Harverd University Press, https://www.jstor.org/stable/j.ctvjghwgp (12.04.2020).
  • Inge Kaul, Isabelle Grunberg ve Marc A. Stern (1999). Defining Global Public Goods, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (2-19), New York: Oxford University Press.
  • Johnson, NPAS & Mueller J. (2002). Updating The Accounts: Global Mortality Of The 1918–1920 “Spanish” Influenza Pandemic. Bull Hist Med, 76:105–115.
  • Kalemli-Ozcan, S. (2006). AIDS, "Reversal" of the Demographic Transition and Economic Development: Evidence From Africa, NBER Working Paper Series, No: 12181, https://www.nber.org/papers/w12181 (05.04.2020).
  • Kambou, G., Devarajan, S. & Over, M. (1992). The Economic Impact of AIDS in an African Country: Simulations with a Computable General Equilibrium Model of Cameroon, Journal of African Economies, I, pp. 109-130.
  • Kim, S. S., Chun, H. & Lee, H. (2005). The Effects of SARS on the Korean Hotel Industry and Measures to Overcome the Crisis: A Case Study of Six Korean Five-Star Hotels, Asia Pacific Journal of Tourism Research, Vol 10, Issue 4, pp.369-377.
  • Martin, L. L. (1999). The Political Economy of International Cooperation, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (51-64), New York: Oxford University Press.
  • Morrissey, O., D. W. te Velde and A. Hewıtt (2002). “Defining International Public Goods: Conceptial Issues”, International Public Goods: Incentives, Measurement and Financing, (Eds.) M. Ferronı and A. Mody, Kluwer Academic Publisher, Boston and Londra, pp. 31-46.
  • Nippani, S. & Washer, K. M. (2004). SARS: A Non-Event For Affected Countries’ Stock Markets?, Applied Financial Economics, Vol. 14, pp. 1105-1110, https://doi.org/10.1080/0960310042000310579 (05.04.2020).
  • Özdemir, H. (2005). Salgın Hastalıklardan Ölümler 1914-1918. Ankara: Türk Tarih Kurumu Yayınları.
  • Pamuk, Ş. (2007). The Black Death and The Origins of The “Great Divergence”Across Europe, 1300-1600, European Review of Economic History, II, pp. 287-317.
  • Sadique M. Z., Adams, E. J., & Edmunds, W. J. (2008). Estimating The Costs of School Closure For Mitigating an Influenza Pandemic, BMC Publ Health, 8 (135), pp. 1-7.
  • Sander B, Nizam A, Garrison Jr LP, Postma MJ, Halloran ME, Longini Jr IM. Economic evaluation of influenza pandemic mitigation strategies in the United States using a stochastic microsimulation transmission model. Value Health; 2008.
  • Sandler, T. (1999). Intergenerational Public Goods Strategies, Efficiency and Institutions, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (20-50), New York: Oxford University Press.
  • Stefan, G. (2015). European Welfare State in a Historical Perspective A Critical Review, European Journal of Interdisciplinary Studies, Vol. 7, Issue 1, pp. 25-38.
  • Taubenberger, J. K. & Morens, D. M. (2006). 1918 Influenza: the Mother of All Pandemics, Emerging Infectious Diseases, Vol. 12, No. 1, pp. 15-22.
  • TFAH (2007). Pandemic Flu and the Potential for US Economic Resession A State-by-State Analysis, Issue Report, https://www.tfah.org/report-details/pandemic-flu-and-the-potential-for-u-s-economic-recession/ (12.04.2020).
  • UNWTO (2020). Impact Assesment of the COVID-19 Outbreak on International Tourism. https://www.unwto.org/tourism-covid-19 (13.04.2020).
  • WHO (2006). SARS How A Global Epidemic Was Stopped, https://apps.who.int/iris/bitstream/handle/10665/207501/9290612134_eng.pdf?sequence=1&isAllowed=y (15.04.2020).
  • Zacher, M. W. (1999). Global Epidemiological Surveillance, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (266-283), New York: Oxford University Press.
  • Zhou, Q., Sun, S. & Liu, Q. (2019). The Capital Flow of Stock Market Studies Based on Epidemic Model with Double Delays, Physica A, 120733, pp. 1-18.

Küresel kamusal bir mal olarak salgın hastalık krizleriyle mücadele küresel salgınların ekonomik etkileri

Year 2020, Volume: 13 Issue: 4, 758 - 775, 01.10.2020
https://doi.org/10.25287/ohuiibf.730281

Abstract

Kamusal malların (public goods) özelliği tüketimde rekabetin olmaması ve tüketimden dışlanamamadır. Kamusal mallarda pozitif dışsallıklar geniş kitlelere yayılmakla birlikte genellikle çevre ve sağlık gibi alanlarda ortaya çıkan negatif dışsallıkların (kamusal kötüler) içselleştirilmesiyle de gündeme gelmektedirler. Dışsallıkların ulusal sınırları aşan etkisi kamusal malları küresel kamusal mallara dönüştürmektedir. Bu bağlamda, salgın hastalıklarla (pandemics) mücadele sadece insan hayatını korumakla kalmayan aynı zamanda ulusal ekonomilerin yıkımını da önleyen küresel kamusal bir maldır. Salgın hastalıklar neticesinde işgücü kaybıyla birlikte ekonomik büyüme hızı da yavaşlamaktadır. Ulusal devletler, hastalığın yayılması ve ölüm oranlarının artmasıyla ekonomilerin istikrarı arasında denge kurmaya çalışmaktadır. Bu çalışma, salgın hastalıkların kısa tarihini ve bu hastalıkların ekonomik etkilerini literatürden örnekler vererek açıklamayı amaçlamaktadır. Gelişmiş ve gelişmekte olan ülkeler salgın hastalıkları ekonomik büyüme denkleminde dikkate almalı ve bütçelerini buna göre düzenlemeli, salgın hastalıklar gibi doğal afetler karşısında daha güçlü bir işbirliğine gitmeli, sağlık sistemlerini güçlendirmeli ve bu tür afetlere karşı hazırlıklı olmalıdırlar.

References

  • Alfaro, L, Chari, A., Greenland , A. N. & Schott, P. K. (2020). Aggregate and Fırm-Level Stock Returns During Pandemics, in Real Time, NBER Working Paper Series, No: 26950, https://www.nber.org/papers/w26950.pdf (05.04.2020).
  • Arsan, H. Ü. (1992). ‘‘Kamu Maliyesi Alanında Yeni Bir İnceleme Konusu: Uluslararası Kamusal Mallar’’, Ankara Üniversitesi S. B. F. Dergisi, C. 47, S. 1
  • Atkeson, A. (2020). What will be the Economic Impact of Covıd-19 in the US? Rough Estimates of Disease Scenarios, NBER Working Paper Series, No: 26867, https://www.nber.org/papers/w26867.pdf (05.04.2020).
  • Baker, S. R., Farrokhnia, R.A., Meyer, S., Pagel, M. & Yannelis, C. (2020). How Does Household Spending Respond to an Epidemic? Consumption During the 2020 COVID-19 Pandemic, NBER Working Paper Series, No: 26949, https://www.nber.org/papers/w26949.pdf (15.04.2020).
  • Barro, R. J. & Ursúa, J. F. (2012). Rare Macroeconomic Disasters, Annual Review of Economics, Vol. 4, pp. 83-109, https://www.jstor.org/stable/42949932 (12.04.2020).
  • Barro, R. J., Ursúa, J. F. & Weng, J. (2020). The Coronavirus and the Great Influenza Pandemic: Lessons from the “Spanish Flu” for the Coronavirus’s Potential Effects On Mortality and Economic Activity, NBER Working Paper Series, No: 26866, https://www.nber.org/papers/w26866.pdf (15.04.2020).
  • Barrot, J. N., Grassi, B. & Sauvagnat, J. (2020). Sectoral Effects of Social Distancing, Centre for Economic Policy Research, Issue 3, pp. 89-107, https://cepr.org/sites/default/files/news/CovidEconomics3.pdf (15.04.2020).
  • Beutels, P., Jia, N., Zhou, QY., Smith, R., Cao, WC., & de Vlas, S. J. (2009). The economic impact of SARS in Beijing, China, Tropical Medicine and International Health, Vol 14. Issue I, pp. 85-91. https://onlinelibrary.wiley.com/doi/epdf/10.1111/j.1365-3156.2008.02210.x (15.04.2020).
  • Bloom, D. E. & Mahal, A. S. (1997). Does The AIDS Epidemic Threaten Economic Growth?, Journal of Econometrics, 77, pp. 105-124.
  • Boucekkine, R., Diene, B. & Azomahou, T. (2008). Growth Economics of Epidemics: A Review of the Theory, Mathematical Population Studies, Vol. 15, Issue:1, pp.1-26,
  • Chen, WC., Huang, A. S., Chuang, JH., Chiu, CC., & Kuo, HS (2011). Social And Economic Impact of School Closure Resulting From Pandemic Influenza A/H1N1, Journal of Infection, 62, pp. 200-203.
  • Chen, L. C., Evans, T. G. & Cash, R. A. (1999). Health As A Global Public Good, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (284-304), New York: Oxford University Press.
  • Claessens, S. & Forbes, K. (2001). International financial contagion: An overview of the issues and the book. In S. Claessens & K. Forbes (Eds), International financial contagion (pp. 3 18). Dordrecht and London: Kluwer.
  • Erdoğdu, M. M. (2006). Küresel Kolektif Varlıklar, Finansman Problemleri ve Düzeltici Vergileme Temelli Çözüm Yolları, Marmara Üniversitesi İ.İ.B.F. Dergisi, C. XXI, S.I, ss. 269-295.
  • Freire, S. (2004). Impact of HIV/AIDS on Saving Behaviour in South Africa, Forum Paper, 13–15 October 2004, https://pdfs.semanticscholar.org/5267/47656af2ebaf4c279bd6814f30f36a38f90a.pdf?_ga=2.79497297.478059263.1588126441-490337133.1579866999 (05.04.2020).
  • Frost, W. H. (1920). Statistics Of Influenza Morbidity: With Special Reference To Certain Factors in Case Incidence and Case Fatality, Public Health Reports (1896-1970), Vol. 31, No. 11, https://www.jstor.org/stable/4575511 (12.04.2020).
  • Fuller, F., Fabiosa, J. & Premakumar, V. (1997). World Trade Impacts of Foot and Mouth Disease in Taiwan, Briefing Paper 97-BP 16.
  • Garrett, T. A. (2007). Economic Effects of the 1918 Influenza Pandemic Implications for a Modern-day Pandemic, Federal Reserve Bank of St. Louis, https://www.stlouisfed.org/~/media/files/pdfs/community-development/research-reports/pandemic_flu_report.pdf (15.04.2020).
  • Herlihy, D. (1997). The Black Death and the Transformation of the West, Harverd University Press, https://www.jstor.org/stable/j.ctvjghwgp (12.04.2020).
  • Inge Kaul, Isabelle Grunberg ve Marc A. Stern (1999). Defining Global Public Goods, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (2-19), New York: Oxford University Press.
  • Johnson, NPAS & Mueller J. (2002). Updating The Accounts: Global Mortality Of The 1918–1920 “Spanish” Influenza Pandemic. Bull Hist Med, 76:105–115.
  • Kalemli-Ozcan, S. (2006). AIDS, "Reversal" of the Demographic Transition and Economic Development: Evidence From Africa, NBER Working Paper Series, No: 12181, https://www.nber.org/papers/w12181 (05.04.2020).
  • Kambou, G., Devarajan, S. & Over, M. (1992). The Economic Impact of AIDS in an African Country: Simulations with a Computable General Equilibrium Model of Cameroon, Journal of African Economies, I, pp. 109-130.
  • Kim, S. S., Chun, H. & Lee, H. (2005). The Effects of SARS on the Korean Hotel Industry and Measures to Overcome the Crisis: A Case Study of Six Korean Five-Star Hotels, Asia Pacific Journal of Tourism Research, Vol 10, Issue 4, pp.369-377.
  • Martin, L. L. (1999). The Political Economy of International Cooperation, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (51-64), New York: Oxford University Press.
  • Morrissey, O., D. W. te Velde and A. Hewıtt (2002). “Defining International Public Goods: Conceptial Issues”, International Public Goods: Incentives, Measurement and Financing, (Eds.) M. Ferronı and A. Mody, Kluwer Academic Publisher, Boston and Londra, pp. 31-46.
  • Nippani, S. & Washer, K. M. (2004). SARS: A Non-Event For Affected Countries’ Stock Markets?, Applied Financial Economics, Vol. 14, pp. 1105-1110, https://doi.org/10.1080/0960310042000310579 (05.04.2020).
  • Özdemir, H. (2005). Salgın Hastalıklardan Ölümler 1914-1918. Ankara: Türk Tarih Kurumu Yayınları.
  • Pamuk, Ş. (2007). The Black Death and The Origins of The “Great Divergence”Across Europe, 1300-1600, European Review of Economic History, II, pp. 287-317.
  • Sadique M. Z., Adams, E. J., & Edmunds, W. J. (2008). Estimating The Costs of School Closure For Mitigating an Influenza Pandemic, BMC Publ Health, 8 (135), pp. 1-7.
  • Sander B, Nizam A, Garrison Jr LP, Postma MJ, Halloran ME, Longini Jr IM. Economic evaluation of influenza pandemic mitigation strategies in the United States using a stochastic microsimulation transmission model. Value Health; 2008.
  • Sandler, T. (1999). Intergenerational Public Goods Strategies, Efficiency and Institutions, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (20-50), New York: Oxford University Press.
  • Stefan, G. (2015). European Welfare State in a Historical Perspective A Critical Review, European Journal of Interdisciplinary Studies, Vol. 7, Issue 1, pp. 25-38.
  • Taubenberger, J. K. & Morens, D. M. (2006). 1918 Influenza: the Mother of All Pandemics, Emerging Infectious Diseases, Vol. 12, No. 1, pp. 15-22.
  • TFAH (2007). Pandemic Flu and the Potential for US Economic Resession A State-by-State Analysis, Issue Report, https://www.tfah.org/report-details/pandemic-flu-and-the-potential-for-u-s-economic-recession/ (12.04.2020).
  • UNWTO (2020). Impact Assesment of the COVID-19 Outbreak on International Tourism. https://www.unwto.org/tourism-covid-19 (13.04.2020).
  • WHO (2006). SARS How A Global Epidemic Was Stopped, https://apps.who.int/iris/bitstream/handle/10665/207501/9290612134_eng.pdf?sequence=1&isAllowed=y (15.04.2020).
  • Zacher, M. W. (1999). Global Epidemiological Surveillance, Inge Kaul, Isabelle Grunberg and Marc A. Stern (Ed.), In the Global Public Goods International Cooperation In The 21th Century (266-283), New York: Oxford University Press.
  • Zhou, Q., Sun, S. & Liu, Q. (2019). The Capital Flow of Stock Market Studies Based on Epidemic Model with Double Delays, Physica A, 120733, pp. 1-18.
There are 39 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Hünkar Güler 0000-0002-9805-284X

Publication Date October 1, 2020
Submission Date April 30, 2020
Acceptance Date September 16, 2020
Published in Issue Year 2020 Volume: 13 Issue: 4

Cite

APA Güler, H. (2020). Struggling the pandemic crises as a global public good: the economic implications of pandemics. Ömer Halisdemir Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, 13(4), 758-775. https://doi.org/10.25287/ohuiibf.730281

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