Author information
a Department of Management and Economics, Texas A&M University Commerce, Commerce, TX 75428, USA
b USDA/APHIS/WS National Wildlife Research Center, Fort Collins, Colorado 80521, USA
c Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces, NM 88003, USA
E-mail: lirong.liu@tamuc.edu (Lirong Liu, corresponding author), Steven.Shwiff@tamuc.edu (Steven Shwiff), Stephanie.A.Shwiff@aphis.usda.gov (Stephanie Shwiff), franniem@nmsu. edu (Maryfrances Miller)
This paper examines the impact of COVID-19 on the US and Texas economy using a computable general equilibrium model, REMI PI+. We consider three scenarios based on economic forecasts from various sources, including the University of Michigan’s RSQE (Research Seminar in Quantitative Economics), IMF, and the Wi orld Bank. We report a GDP loss of $106 million (a 6% decline) with 1.2 million jobs lost (6.6%) in Texas in 2020. At the national level, GDP loss is $996 billion (a 5% decline) with 11.5 million jobs lost (5.5%) in the same year. By 2026, the aggregate total GDP loss in Texas ranges from $378 to $629 million. The estimated unemployment rate in Texas in 2021 ranges from 5% to 7.7%, depending on modeling assumptions. The granularity of the CGE results allow examination of the most and least impacted industries. Health Care and Social Assistance, Construction, and Accommodation and Food Services incur the most job loss while State and Local Government and Farm will likely see an increase in jobs for 2020. These insights separate our work from most current impact studies.
COVID-19, computational general equilibrium model (CGE), economic impact
Lirong Liu, Steven Shwiff, Stephanie Shwiff, Maryfrances Miller. Impact of COVID-19 on the US and Texas Economy: A General Equilibrium Approach. Front. Econ. China, 2021, 16(4): 697–713 https://doi.org/10.54605/fec20210405
