Stagpression: The Economic and Financial Impact of COVID-19 Pandemic

Contemporary Economics Vol. 15, Issue 1, pp. 19-33

15 Pages Posted: 5 May 2020 Last revised: 20 Mar 2021

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

Akademia Ekonomiczno-Humanistyczna w Warszawie; Universidad de San Carlos de Guatemala

Evangelos Koutronas

West Virginia University - Department of Mathematics

Minsoo Lee

Asian Development Bank

Date Written: May 5, 2020

Abstract

This paper formulates an analytical framework to understand the spatiotemporal patterns of epidemic disease occurrence, its relevance, and implications to financial markets activity. The paper suggests a paradigm shift: a new multidimensional geometric approach to capture all symmetrical and asymmetrical strategic graphical movement. Furthermore, the concept of stagpression is introduced, a new economic phenomenon to explain the uncharted territory for the world economies and financial markets are getting into. The Massive Pandemic Contagious Diseases Damage on Stock Markets Simulator (φ-Simulator) to evaluate the determinants of capital markets behavior in the presence of an infectious disease outbreak. The model investigates the impact of COVID-19 on the performance of ten stock markets, including S&P 500, TWSE, Shanghai Stock Exchange, Nikkei 225, DAX, Hang Seng, U.K.-FTSE, KRX, SGX, and Malaysia-FTSE.

Keywords: Stagpression, Pandemics, Economic Modeling, Economic Desgrowth, Policy Modeling, Stock Market

JEL Classification: R11, R12

Suggested Citation

Ruiz Estrada, Mario Arturo and Koutronas, Evangelos and Lee, Minsoo, Stagpression: The Economic and Financial Impact of COVID-19 Pandemic (May 5, 2020). Contemporary Economics Vol. 15, Issue 1, pp. 19-33, Available at SSRN: https://ssrn.com/abstract=3593144 or http://dx.doi.org/10.2139/ssrn.3593144

Mario Arturo Ruiz Estrada (Contact Author)

Akademia Ekonomiczno-Humanistyczna w Warszawie ( email )

Okopowa 59, 01-043 Warsaw, Poland
Warsaw, 00-007
Poland
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HOME PAGE: http://https://vizja.pl/

Universidad de San Carlos de Guatemala ( email )

Ciudad Universitaria Zona 12
Guatemala City, Guatemala city 01012
Guatemala
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HOME PAGE: http://www.usac.edu.gt

Evangelos Koutronas

West Virginia University - Department of Mathematics ( email )

PO Box 6201
Morgantown, WV 26506
United States

Minsoo Lee

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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