Determinants of the Fiscal Support of Governments in Response to the COVID-19 Pandemic

February 5, 2021

Li S-K, Liang X.

Frontiers in Public Health

Li and Liang analyzed the fiscal support offered to countries by their governments during COVID-19 in reaction to the economic burden created by the pandemic, including stimulus packages, spending, forgone revenues and liquidity support. The study used empirical analyses of cross-sectional data estimations from 129 developed and developing countries. Using the World Pandemic Uncertainty Indices (WPUI), the results showed positive correlation between higher levels of uncertainty related to COVID-19 and fiscal support offered, measured as the share of the country’s Gross Domestic Product (GDP). Authors also found higher fiscal support in countries with larger and older populations, and that fiscal support is not related to per capita income or development indicators. The study concluded that governments have considered COVID-19-related uncertainty outcomes to protect their populations, especially older people.

Li S-K, Liang X. Determinants of the Fiscal Support of Governments in Response to the COVID-19 Pandemic. Front Public Heal 2021; 8: 637557.

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