The COVID19 (coronavirus) pandemic and associated containment measures are expected to cause far-reaching damage to economies around the world. Firms are suffering from reduced demand due to movement restrictions, from reduced labor supply and from constraints to sourcing material inputs. The breakup of otherwise healthy businesses in response to a temporary shock implies large social costs. Governments are therefore intent on designing emergency policies to keep businesses afloat. The authors present simulations using firm-level tax records from Albania, which vary the duration of the lockdown and the relative impact across sectors.
Details
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Author
Bachas,Pierre Jean, Brockmeyer,Anne, Semelet,Camille Marine, Ungerer,Christoph T F
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Document Date
2020/08/01
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Document Type
Brief
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Report Number
151975
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2021/07/19
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Disclosure Status
Disclosed
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Doc Name
The Impact of COVID-19 on Formal Firms : Evidence from Albania
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Keywords
wage subsidy; Wage Subsidies; corporate income tax rate; loss in tax revenue; Wage Bill; loss in revenue; machinery and equipment; loss of employment; increase in debt; leather goods stores; annual wage bill; degree of heterogeneity; number of workers; return to zero; general equilibrium model; interest rate cap; compulsory social security; fund for health; output loss; minimum wage; panel data; air transportation; sovereign guarantee; demand shock; average wage; credit constraint; formal economy; impact categories; defense spending; increased revenue; cost structure; administrative datum; minimum salary; monthly revenue; labour cost; call center; capital input; large business; tourism sector; working capital; private company; tax deferral; revenue category; metal product; formal employment; government wage; banking system; humanitarian relief; back up; production capacity; budget support; retail trade; home furnishings; Book Store; news dealers; store retailers; piece goods; automotive part; bus transportation; Real estate; Waste Management; change product; aggregate output; debt level; indirect impact; performing art; personal service; amusement park; output shock; social cost; wage loss; paper product; petroleum product; basic metal; tax records; emergency policy; electrical equipment; temporary shock; transport equipment; expected loss; labor supply; movement restriction
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Citation
Bachas,Pierre Jean Brockmeyer,Anne Semelet,Camille Marine Ungerer,Christoph T F
The Impact of COVID-19 on Formal Firms : Evidence from Albania (English). MTI Practice Note,no. 9A Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/171421598009517372/The-Impact-of-COVID-19-on-Formal-Firms-Evidence-from-Albania