Political Institutions and Policy Responses During a Crisis

39 Pages Posted: 19 Jun 2020

See all articles by Gaurav Chiplunkar

Gaurav Chiplunkar

University of Virginia - Darden School of Business

Sabyasachi Das

Ashoka University

Date Written: June 17, 2020

Abstract

Do countries with differing political institutions respond differently to a national crisis? The coronavirus pandemic, where almost all countries were hit by the same crisis in a short span of time, provides a rare opportunity to answer this question. For a sample of 125 countries, we use high frequency data on two measures of policy response- (i) containment policies, relating to closure of public spaces and restrictions on movement of people, and (ii) health policies, relating to public information campaigns, testing and contact tracing, to examine their policy response to the crisis. We show that: first, non-democracies have more stringent containment and health policies prior to their first COVID-19 case. However, after registering their first case, democracies either close this gap (in containment policies), or surpass non-democracies (in health policies) within a week. Second, policy responses do not differ by governance systems (presidential or parliamentary) in democracies. However, elected leaders who performed better in the last election or face their next election farther in the future are more aggressive in their policy response. Third, democracies with greater media freedom respond more slowly in containment policies, but are more aggressive in health policies. Lastly, more conducive political norms (such as trust in the elected government) systematically predict a more aggressive response in both containment and health policies. Our analysis therefore suggests that political institutions and the incentives of the political leaders embedded therein, significantly shape the policy response of governments to a national crisis.

Keywords: Democracy, Autocracy, Electoral Systems, COVID-19

JEL Classification: H12, D78, I18

Suggested Citation

Chiplunkar, Gaurav and Das, Sabyasachi, Political Institutions and Policy Responses During a Crisis (June 17, 2020). Available at SSRN: https://ssrn.com/abstract=3629397 or http://dx.doi.org/10.2139/ssrn.3629397

Gaurav Chiplunkar (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Sabyasachi Das

Ashoka University ( email )

Rajiv Gandhi Education City, Plot #2,
Sonepat
Rai, Haryana 131029
India

HOME PAGE: http://dassabyasachi.wordpress.com/

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