Coronavirus Pandemic as a Factor in Correctional Funding

Abstract

Aim. The presented study aims to determine the impact of the COVID-19 pandemic on economic development and the specific features of its manifestation in national economic systems; to examine approaches to selecting areas for correctional funding and the tools for making related management decisions, including emergency decisions.Tasks. To achieve the set aim, the authors investigate the effects of coronavirus and the dynamics of the underlying economic indicators, the types, depth, and duration of coronavirus cycles, directions and volumes of correctional funding, as well as management tools for making correctional management decisions during short and long periods of uncertainty.Methods. This study is based on factor analysis in the context of the institutional economy. Content analysis is used in attracting publications on the assessment of financial losses during post-pandemic development.Results. The authors propose an approach to assessing the effects of the pandemic, which include post-pandemic losses and correctional management decisions, including emergency budget decisions. The tools of correctional funding include insurance and non-insurance measures aimed at supporting the population and the business, aggregate supply and demand, consumption and investment. The wave dynamics of the effects of the pandemic are investigated according to the V-cycle, W-cycle, and L-cycle scenario.Conclusions. The need to expand the scope of examination of the economic development model with allowance for the non-economic factor of the coronavirus pandemic in the framework of institutional analysis is substantiated. Correctional funding is considered as an effect of the coronavirus pandemic along with the deteriorating quality of human capital and decreasing labor productivity. The specific wave dynamics of the coronavirus trace are confirmed, unrelated to problems in the financial market or the real estate market.