cover pandemics have a change in trend and persistence in growth, and in level and persistence in unemployment. We find that … in recent times seem to have a permanent effect on growth. Moreover, our results show that the unemployment rate …

increase in the pace of job creation and destruction may have substantial effects on employment and unemployment;the effects … may be out of its unemployment equilibrium for quite a long time after a shock occurs.The novelty of the model is that it … takes explicitly account of the propagationof shocks through the various duration classes of unemployment andallows for …