Mert Topcu – Alanya Alaaddin Keykubat University, Department of Economics, 07425, Alanya, Antalya, Turkey
6th International Scientific Conference – EMAN 2022 – Economics and Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 24, 2022, CONFERENCE PROCEEDINGS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-57-8, ISSN 2683-4510
Lockdown policies, at the forefront to mitigate the spread of the coronavirus, have led governments to face a trade-off between health and recessionary impacts. To deal with the devastating economic impacts of the pandemic, governments around the world have announced stimulus packages. Given the fiscal burden of health-oriented policies, this study investigates the impact of lockdown policies on fiscal policy stimulus packages. Using simple cross-country OLS regression for 162 countries, this study finds that a stricter lockdown policy requires a higher stimulus package. In addition, threshold regression results indicate that a stringent policy is associated with a higher stimulus package for the countries where income distribution is relatively unequal and institutional quality is relatively lower.
Lockdown policy; Fiscal stimulus package; COVID-19
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