The Political Economy of the COVID-19 Pandemic

Abstract

We argue that the policy response to the COVID-19 pandemic by all levels of government around the world is not consistent with recommendations from standard welfare economics. Thus, it is important to ask why such policies have been adopted. That opens the door to examining the political economy of the COVID-19 pandemic. This requires examining the incentives and information that confront policy makers and voters and the institutional environments that shape their incentives and information. This lead article frames questions addressed in the remainder of the symposium.

Keywords: COVID-19, Pandemic, Political Economy, Public Choice, Transmission Externality

JEL Classification: I18, I31, H1, D6, D7, P5