Economic Freedom, Pandemics and Robust Political Economy

Southern Economic Journal, Volume 87, Issue 4, April 2021, Pages 1250-1266

24 Pages Posted: 15 Dec 2020 Last revised: 7 Dec 2021

See all articles by Rosolino Candela

Rosolino Candela

George Mason University - Mercatus Center; University Francisco Marroquín

Vincent Geloso

George Mason University - Department of Economics

Date Written: December 11, 2020

Abstract

What is the relationship, if any, between economic freedom and pandemics? This paper addresses this question from a robust political economy approach. As is the case with recovery from natural disasters or warfare, a society that is relatively free economically offers economic actors greater flexibility to adapt to pandemics. We argue that societies that are more economically free will be more robust to the impact from pandemics, illustrated by shorter time for economic recovery. We illustrate this relationship by testing how initial levels of economic freedom (at the start of the major influenza pandemics of the 20th century) temper contractions and accelerate recoveries for 20 OECD countries.

Keywords: Economic Freedom; Pandemics; Robust Political Economy

JEL Classification: B51, H12, P52

Suggested Citation

Candela, Rosolino and Geloso, Vincent, Economic Freedom, Pandemics and Robust Political Economy (December 11, 2020). Southern Economic Journal, Volume 87, Issue 4, April 2021, Pages 1250-1266, Available at SSRN: https://ssrn.com/abstract=3747216 or http://dx.doi.org/10.2139/ssrn.3747216

Rosolino Candela

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

University Francisco Marroquín ( email )

Street Manuel F. Ayau (6 Final Street), Zone 10
01010
Guatemala

Vincent Geloso (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

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