The COVID-19 Bailouts

58 Pages Posted: 26 Apr 2020 Last revised: 1 Jun 2020

See all articles by Jean-Marie Meier

Jean-Marie Meier

University of Texas at Dallas

Jake Smith

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics

Date Written: May 29, 2020

Abstract

US policy makers responded to the COVID-19 epidemic by providing $1.8 trillion in private sector bailouts. We collect data on all bailouts for publicly-listed firms. We document empirical facts of the bailout programs and discuss policy implications. A surprisingly large fraction of the bailout firms are start-up like firms, for which the bailouts appear to be a windfall. The effective tax rate of bailed out firms is 4%. This is the first paper to collect and analyze data on the COVID-19 bailouts.

Keywords: COVID-19, coronavirus, bailouts, too-big-to-fail, moral hazard

JEL Classification: G32, G38, H81

Suggested Citation

Meier, Jean-Marie and Smith, Jake, The COVID-19 Bailouts (May 29, 2020). Available at SSRN: https://ssrn.com/abstract=3585515 or http://dx.doi.org/10.2139/ssrn.3585515

Jean-Marie Meier (Contact Author)

University of Texas at Dallas ( email )

Jindal School of Management
800 W. Campbell Road
Richardson, TX 75080
United States

HOME PAGE: http://www.jean-mariemeier.com/

Jake Smith

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics ( email )

800 W Campbell Rd
Richardson, TX 75080
United States

HOME PAGE: http://www.jindal.utdallas.edu/phd-students/jake-smith

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
549
Abstract Views
1,893
rank
53,816
PlumX Metrics