Fig. 4.

Responses to an epidemic shock in the finance capitalist period (1900–2019) Notes: The figure depicts impulse responses – estimated by Jordà (2005)’s local projections – of real wages (Panel A), GDP per capita growth (Panel B), real investment growth (Panel C), labour-to-capital ratio (Panel D), real consumption growth (Panel E) and real share price return (Panel F) to a shock in the epidemic death rate. We include death rate from wars and a dummy taking value one if an adverse climate event occurred and zero otherwise. To control for autocorrelation we include two lags of the dependent and control variables. Significant estimates are denoted by dots. Grey bands indicate 90% confidence bands. Standard errors are corrected for heteroskedasticity and autocorrelation (Newey, West, 1987, Newey, West, 1994). ${}^{*}$ IRF refers to period 1900–2016.