Democracy and fiscal support during the COVID-19 pandemic: an empirical investigation

Gur N., Hanedar E. Y., Hanedar A. O.

APPLIED ECONOMICS LETTERS, cilt.30, sa.21, ss.3068-3074, 2023 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 30 Sayı: 21
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1080/13504851.2022.2120950
  • Dergi Adı: APPLIED ECONOMICS LETTERS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, CAB Abstracts, EconLit, Geobase, Public Affairs Index, Veterinary Science Database, DIALNET
  • Sayfa Sayıları: ss.3068-3074
  • Anahtar Kelimeler: COVID-19, democracy, fiscal support, instrumental variable, IMF datasets, 2SLS, NATURAL DISASTERS, POLICY
  • Marmara Üniversitesi Adresli: Hayır

Özet

Democracies are expected to implement expansionary fiscal policies to accelerate economic recovery in crisis times. However, as experienced in the 2008 global financial crisis, democratic countries sometimes tend to adopt austerity measures during crises. This paper examines the relationship between democracy and fiscal support during the COVID-19 pandemic. The empirical findings confirm the positive impact of democracy on fiscal support. As we unbundle the effects, democracy has a significant effect for the non-health sector, but the effect is insignificant for the health sector.