Elgin, C., Williams, C.C. orcid.org/0000-0002-3610-1933, Oz‐Yalaman, G. et al. (1 more author) (2022) Fiscal stimulus packages to COVID-19: The role of informality. Journal of International Development, 34 (4). pp. 861-879. ISSN 0954-1748
Abstract
In this paper, we use a novel cross-country dataset to investigate the relationship between the prevalence of the shadow economy and fiscal policy responses to the economic crisis induced by the pandemic. The finding is that countries with a relatively larger shadow economy before the pandemic have adopted a smaller fiscal policy package. The results are robust to different econometric specifications, including an instrumental variable estimation. This reinforces the wider literature that countries (especially those with larger shadow economies) generally follow a procyclical policy as opposed to the optimal and countercyclical one.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2022 John Wiley & Sons, Ltd. |
Keywords: | COVID-19; fiscal policy; informal sector; pandemic; shadow economy |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 01 Jul 2022 10:43 |
Last Modified: | 02 Jun 2023 11:56 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1002/jid.3628 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:188424 |