Volatility During the COVID-19 Pandemic - new publication by Tony Berrada
A new paper co-authored by GFRI's Professor Tony Berrada, along with Jerome Detemple and Marcel Rindisbacher, examines how COVID-19 and related health policies triggered unprecedented market volatility, particularly in the S&P 500.
Using an integrated economic and epidemiological model, the study shows that workforce disruptions and investor sentiment—amplified by containment measures—were key drivers of the volatility spike. The findings highlight a critical trade-off: measures that protect public health can intensify financial instability. While the model offers a robust explanation of short- and long-term dynamics, future research must incorporate monetary policy effects to fully capture market behavior.
The paper, Volatility During the COVID-19 Pandemic, is published in Management Science.
Feb 15, 2026