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Is democracy affecting the economic policy responses to COVID-19? A cross-country analysis

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  • João Ricardo Costa Filho

    (NOVA School of Business and Economics, Carcavelos, Portugal)

  • António Neto

    (University College London, London, United Kingdom)

Abstract

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.

Suggested Citation

  • João Ricardo Costa Filho & António Neto, 2024. "Is democracy affecting the economic policy responses to COVID-19? A cross-country analysis," Economic Analysis Letters, Anser Press, vol. 3(1), pages 1-7, March.
    • Handle: RePEc:bba:j00004:v:3:y:2024:i:1:p:1-7:d:202
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    References listed on IDEAS

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    Cited by:

    1. Acedański, Jan, 2021. "Optimal lockdown policy during the election period," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 102-117.
    2. Alfano, Vincenzo & Ercolano, Salvatore & Pinto, Mauro, 2022. "Carrot and stick: Economic support and stringency policies in response to COVID-19," Evaluation and Program Planning, Elsevier, vol. 94(C).

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    More about this item

    Keywords

    Covid-19; Democracy; Economic policy;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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