DECREASING CONSUMPTION BECAUSE OF COVID-19? A MULTISECTORAL ASSESSMENT

This paper aims at the detection of the magnitude of direct and indirect effects on total output connected to the changes in households’ consumption levels and composition in the years of Covid 19 pandemics with respect to the pre Covid period. The study applies the multisectoral viewpoint that allows for the evaluation of the direct and indirect impacts of a decrease in the households’ consumption expenditures on total output which represents the level of economic activities. Year 2018 represents the benchmark year of the analysed time span ered (2018- 2020). We apply the Leontief inverse of 2018 to the consumptions of years 2018 to 2020. In this way, a quantification of the changes in the level of activities as expressed by sectoral total outputs caused by the changes in the households’ consumption expenditures can be obtained.