Impact of Pandemics on Alternative Measure of Economic Well-being: Evidence from Panel Data

The present study aims at understanding how the pandemics SARS (2003), H1N1 (2009), MERS (2012), Ebola (2014), Zika (2016) and COVID-19 (2019 and 2020) have impacted the economic well-being of people across 63 countries classified into different income groups for the period from 1990 to 2020. Panel regression using the least-squares dummy variables model (fixed effects model) and the random effects model has been employed. We have used the Hausman test to choose between the models. The robustness of the results of the fixed effects model was checked by dynamic generalised method of moments estimators. To have a comprehensive measure of well-being, we have computed an inequality-adjusted welfare index, which takes into account the environmental/ecological aspects of well-being, final consumption expenditure and discounts for inequality. It has been observed that pandemics like H1N1 in 2009, Zika in 2016 and COVID-19 in 2019–2020 have a negative and significant impact on the inequality-adjusted welfare estimate for the whole panel. Lastly, policy suggestions have been made for attaining a better sustainable society with enhanced levels of economic well-being.