The COVID-19 Bailouts
58 Pages Posted: 26 Apr 2020 Last revised: 1 Jun 2020
Date Written: May 29, 2020
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: Suggested Citation