Fig. 4.

Dynamics of global output (left panel) and global GDP (right panel) for the reference scenario (neutral) and a range of values of the lag parameter T₀ for household spending in the scenario with confidence shock. For output, are also reported the output given direct impacts and the equilibrium level of output. All values are in million U.S dollars. The Chinese lockdown ends at day 43. In major high-income economies, the lockdown is assumed to end around day 100. Elasticity parameter is set to θ = 0.5. Speed parameters for price and technological adjustment, τ_p and τ_w, are set to 0.6