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COVID-19 Pandemic and Economic Stimulus Policies: Evidence From 156 Economies

Xingyuan Yao (Zhejiang Financial College, China)

Mobility and Inequality Trends

ISBN: 978-1-80382-902-9, eISBN: 978-1-80382-901-2

Publication date: 25 January 2023

Abstract

This chapter investigates the impact of the COVID-19 pandemic on economic stimulus policies. Based on data from 156 economies, empirical results show that in the medium term, cumulative effect of COVID-19 pandemic is positively correlated with the economic stimulus policies but not in the short term. Heterogeneity tests show that while economic policies are used in developed economies more often, restrictive measures in developing countries are likely used as a substitution; deaths have a positive impact on economic stimulus policies but confirmed cases not. The results suggest that the pandemic may reinforce economic inequality due to potential stimulus policy capabilities, requiring international coordination and assistance to low-and-middle income countries in various aspects.

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Acknowledgements

Acknowledgements

The author acknowledges the participants at the ninth meeting of the society for the study of economic inequality (ECINEQ) for their useful comments. The author also acknowledges the financial support from Natural Science Foundation of Zhejiang Province in China (#LY22G030014), basic scientific research project of provincial colleges and universities in Zhejiang Province (#2022ZD02), and High-level Research and Innovation Team of Zhejiang Financial College (#2021XS06).

Citation

Yao, X. (2023), "COVID-19 Pandemic and Economic Stimulus Policies: Evidence From 156 Economies", Bandyopadhyay, S. and Rodríguez, J.G. (Ed.) Mobility and Inequality Trends (Research on Economic Inequality, Vol. 30), Emerald Publishing Limited, Leeds, pp. 243-266. https://doi.org/10.1108/S1049-258520230000030011

Publisher

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Emerald Publishing Limited

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