Open Access Journal Article

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

by João Ricardo Costa Filho a orcid  and  António Neto b,* orcid
a
NOVA School of Business and Economics, Carcavelos, Portugal
b
University College London, London, United Kingdom
*
Author to whom correspondence should be addressed.
EAL  2024, 44; 3(1), 44; https://doi.org/10.58567/eal03010001
Received: 10 July 2023 / Accepted: 16 August 2023 / Published Online: 15 March 2024
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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.

Keywords: Covid-19; Democracy; Economic policy;
Copyright: © 2024 by Filho and Neto. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Filho, J. R. C.; Neto, A. Is democracy affecting the economic policy responses to COVID-19? A cross-country analysis. Economic Analysis Letters, 2024, 3, 44. https://doi.org/10.58567/eal03010001
AMA Style
Filho J R C, Neto A. Is democracy affecting the economic policy responses to COVID-19? A cross-country analysis. Economic Analysis Letters; 2024, 3(1):44. https://doi.org/10.58567/eal03010001
Chicago/Turabian Style
Filho, João R. C.; Neto, António 2024. "Is democracy affecting the economic policy responses to COVID-19? A cross-country analysis" Economic Analysis Letters 3, no.1:44. https://doi.org/10.58567/eal03010001
APA style
Filho, J. R. C., & Neto, A. (2024). Is democracy affecting the economic policy responses to COVID-19? A cross-country analysis. Economic Analysis Letters, 3(1), 44. https://doi.org/10.58567/eal03010001

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