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Did Fiscal Space Foster Covid-19's Fiscal Stimuli ?

Author

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  • Ablam Estel Apeti

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Jean-Louis Combes

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Xavier Debrun
  • Alexandru Minea

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

Using a large sample of 125 countries we evaluate the effect of the pre-Covid-19 fiscal space on the size of the fiscal stimulus packages in response to the virus. We find that higher ratings and higher tax revenues (to public debt) predict the size of fiscal stimuli, while public debt (to GDP) does not. These findings vary with countries' level of economic development and the type of fiscal stimuli.

Suggested Citation

  • Ablam Estel Apeti & Jean-Louis Combes & Xavier Debrun & Alexandru Minea, 2021. "Did Fiscal Space Foster Covid-19's Fiscal Stimuli ?," Post-Print hal-03351634, HAL.
    • Handle: RePEc:hal:journl:hal-03351634
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-03351634
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    References listed on IDEAS

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    Cited by:

    1. Nikolaos Apostolopoulos & Marios Psychalis & Panagiotis Liargovas, 2022. "Discussing EU Policies and Mechanisms towards the COVID-19 Pandemic Crisis: A Case Study of Greece," World, MDPI, vol. 3(4), pages 1-11, October.
    2. Căpraru, Bogdan & Georgescu, George & Sprincean, Nicu, 2022. "Do independent fiscal institutions cause better fiscal outcomes in the European Union?," Economic Systems, Elsevier, vol. 46(2).

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    Keywords

    Covid-19; Fiscal space; Economic development;
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