Economic Impact of Covid 19 - A System Dynamics Model

The main goal of the study was to examine the economic impact of COVID-19. Four objectives were formulated based on the research questions. This gave a leeway for formulation of four hypotheses. The hypotheses were then tested to assert the relationships between different independent variables and the dependent variable. The research was a cross-sectional survey of 496 individuals from Berlin, Germany. Out of the 496 survey questionnaires, only 432 of them were filled and returned via email and google meet. The assumption of Sphericity was tested to evaluate the homogeneity of the dataset variables. A level of 5% was chosen when testing for the significance amongst the variables. The results indicated that the relationship between the variables was statistically significant as the level of significance was reached when an adjusted test (i.e. Bonferroni) was conducted. A regression analysis was also conducted to ascertain the relationship between the three independent variables and the dependent variable. For instance, the result showed that a unit change in government stimulus measures saw an increase in consumer spending on different sectors while a unit change in COVID-19 transmission rates saw a decrease in consumer spending on the other sectors. The study is anchored by past studies on the same.