TY - JOUR
T1 - Is democracy affecting the economic policy responses to COVID-19?
T2 - A cross-country analysis
AU - Costa Filho, João Ricardo
AU - Neto, António
PY - 2024/3/15
Y1 - 2024/3/15
N2 - How does democracy relate to the initial economic policy responses to Covid-19? Using a cross country analysis, we find that countries with a higher degree of democracy have stronger economic policy responses than their peers. However, when we separate monetary and financial policies from fiscal policy, democracy is not associated with the latter when we control for the income level of a country. Finally, for countries with lower levels of labor participation, high levels of income inequality are associated with weaker policy responses.
AB - How does democracy relate to the initial economic policy responses to Covid-19? Using a cross country analysis, we find that countries with a higher degree of democracy have stronger economic policy responses than their peers. However, when we separate monetary and financial policies from fiscal policy, democracy is not associated with the latter when we control for the income level of a country. Finally, for countries with lower levels of labor participation, high levels of income inequality are associated with weaker policy responses.
U2 - https://doi.org/10.58567/eal03010001
DO - https://doi.org/10.58567/eal03010001
M3 - Article
SN - 2972-3272
VL - 3
SP - 1
EP - 7
JO - Economic Analysis Letters
JF - Economic Analysis Letters
IS - 1
ER -
