Brinca, PedroMalta, Ana Clara Moreno Salteiro Casimiro2024-02-232024-02-232023-01-232023-01-23http://hdl.handle.net/10362/164038We apply the Business Cycle Accounting method proposed by Chari et al. (2007) to Portugal and Spain during the Covid-19 period, using BCAppIt! app by Loria and Brinca (2020). We conclude that both countries behave similarly, with the labor wedge as the main driver of the episode. The efficiency wedge took a secondary role, and the investment wedge was a relevant contributor for Portugal. The common access to International Assistance, under the umbrella of the EU and the ECB may explain why both countries behaved similarly, although internal public policy may have contributed to the difference regarding the investment wedgeengBusiness cycle accountingCovid-19Macroeconomic fluctuationsFinancial frictionsWedgesEconomicsmaster thesis203317408