Assessment of the impact of the COVID-19 pandemic on the poverty of households

Abstract

Introduction. The COVID-19 pandemic has caused grave and severe losses in many of the economies across the globe. The impact and the duration of the economic crisis occurring due to the pandemic among certain households is difficult to anticipate since the indeterminacy is being defined through the duration of the crisis and costs for the recovery of the economy. The purpose of the paper is to study theoretical aspects related to the assessment of the impact of the COVID-19 pandemic on the poverty of households. Methods. The theoretical and methodological basis of the study are modern theories, concepts, hypotheses. Comparative analysis is used. The methodological and information basis of the work are scientific works, materials of periodicals, information resources. Results. The paper incorporates a content analysis of studies focusing on the economic impact of the COVID-19 on the development of national economies. The majority of studies assess economic implications of the COVID-19 however they are concentrated on the macroeconomic and financial impact of the Corona Crisis. The impact on national economies is subsequently reduced to the microlevel, specifically the social and economic impact on individuals. Nonetheless, there is a need for a microanalysis which may better describe the interrelation between sectors and countries (the effect of macroeconomic aggregate indicators) and supplement the macroanalysis, providing more relevant evaluations of the impact of the distribution of income, outline the authorities of households, the role of people's savings, determine the resilience of households. The work establishes main assumptions and restrictions of formulating the model of impact of social and economic implications of the COVID-19 pandemic on the poverty of households Conclusion. Taking into consideration the distribution of incomes for various sectors, the proposed model allows to ensure the assessment of losses in the consumption of households, savings depletion and time for their recovery. It has been proven that without the social protection of the population the Corona Crisis will lead to a massive economic shock for the national economy. Prospects of further studies lie in the assessment of the impact of indirect macro-level factors, role of indeterminacy in the decision-making of households and implications in case of numerous waves of social crisis as well as the possible effect in the condition of concurrent exogenous shocks.