Carrot and stick: Economic support and stringency policies in response to COVID-19.
Eval Program Plann
; 94: 102129, 2022 10.
Article
in English
| MEDLINE | ID: covidwho-1914355
ABSTRACT
To address the economic losses caused by the COVID-19 pandemic, countries have implemented, together with policies aimed at stopping the spread of the virus, a mixture of fiscal and monetary measures. This work investigates the effect of containment policies and economic support measures on economic growth in the short run, investigating a time window of six quarters in a cross country perspective. Our results confirm the existence of a negative effect of stringency measures on GDP; we also detect a positive effect from economic support measures. Moreover, looking at the interaction between these two kinds of interventions, our findings suggest that up to a relatively low level of stringency policies, economic support measures are able to positively counterbalance the negative impact of containment and closure policies. When the level of closures became more severe, however, the economic support measures that countries adopt are not able to completely recoup, in the short run, the economic losses due to stringency policies. Results suggest that in order to have a positive net effect, policymakers should take into account the level of stringency measures implemented before investing in economic support.
Keywords
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Main subject:
Daucus carota
/
COVID-19
Type of study:
Randomized controlled trials
Limits:
Humans
Language:
English
Journal:
Eval Program Plann
Year:
2022
Document Type:
Article
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