IDEAS home Printed from https://ideas.repec.org/a/spr/italej/v10y2024i2d10.1007_s40797-023-00243-5.html
   My bibliography  Save this article

Why Do You Make Things So Complicated? Understanding the Texts of Regulations During the COVID-19 Pandemic

Author

Listed:
  • Vincenzo Alfano

    (DiSEGIM, University of Napoli Parthenope
    Center for Economic Research-CES-Ifo)

  • Massimo Guarino

    (Italian Ministry of Culture)

Abstract

The last two years have been characterized by a considerable increase in the number of national and local regulations to contain and fight the spread of the COVID-19 contagion. The literature suggests that poor readability of regulations comes with a significant cost in terms of public compliance, in various contexts. Does the readability of COVID-19 regulations impact their effectiveness? We study the matter in Italy, a country severely affected by the first wave of COVID-19, and one that has seen many local regulations that have tried to halt the virus. Our empirical evidence, obtained from a corpus built on the basis of all 640 regional COVID-19 regulations that have been published, was collected from the Italian Conference of Regions and Autonomous Provinces between 21 February and 14 June 2020. Our results, obtained through F-GLS estimations with fixed, hybrid, and random effects, suggest that the readability of the regulations affected the spread of the pandemic, and that an improvement in readability would lead to more efficient outcomes.

Suggested Citation

  • Vincenzo Alfano & Massimo Guarino, 2024. "Why Do You Make Things So Complicated? Understanding the Texts of Regulations During the COVID-19 Pandemic," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(2), pages 929-955, July.
  • Handle: RePEc:spr:italej:v:10:y:2024:i:2:d:10.1007_s40797-023-00243-5
    DOI: 10.1007/s40797-023-00243-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40797-023-00243-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s40797-023-00243-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. S. Ercolano, 2012. "Italian Dualism in Foreign Scholars' Analyses," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3, pages 411-444.
    2. Bonsall, Samuel B. & Leone, Andrew J. & Miller, Brian P. & Rennekamp, Kristina, 2017. "A plain English measure of financial reporting readability," Journal of Accounting and Economics, Elsevier, vol. 63(2), pages 329-357.
    3. Biddle, Gary C. & Hilary, Gilles & Verdi, Rodrigo S., 2009. "How does financial reporting quality relate to investment efficiency?," Journal of Accounting and Economics, Elsevier, vol. 48(2-3), pages 112-131, December.
    4. Tim Loughran & Bill Mcdonald, 2014. "Measuring Readability in Financial Disclosures," Journal of Finance, American Finance Association, vol. 69(4), pages 1643-1671, August.
    5. Sara Schiavone & Francesco Attena, 2020. "Measuring Health Literacy in Southern Italy: A cross-sectional study," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-11, August.
    6. Reinhard Schunck, 2013. "Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models," Stata Journal, StataCorp LLC, vol. 13(1), pages 65-76, March.
    7. Jose A. Puppim De Oliveira & Yijia Jing & Paul Collins & Shuhua Monica Liu & Qianli Yuan, 2015. "The Evolution of Information and Communication Technology in Public Administration," Public Administration & Development, Blackwell Publishing, vol. 35(2), pages 140-151, May.
    8. Annamaria Nifo & Gaetano Vecchione, 2014. "Do Institutions Play a Role in Skilled Migration? The Case of Italy," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1628-1649, October.
    9. Li, Feng, 2008. "Annual report readability, current earnings, and earnings persistence," Journal of Accounting and Economics, Elsevier, vol. 45(2-3), pages 221-247, August.
    10. Bargain, Olivier & Aminjonov, Ulugbek, 2020. "Trust and compliance to public health policies in times of COVID-19," Journal of Public Economics, Elsevier, vol. 192(C).
    11. Kumar, Anand & Priya, Bhawna & Srivastava, Samir K., 2021. "Response to the COVID-19: Understanding implications of government lockdown policies," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 76-94.
    12. Giesselmann, Marco & Schmidt-Catran, Alexander, 2020. "Interactions in Fixed Effects Regression Models," SocArXiv m78qf_v1, Center for Open Science.
    13. Ho Fai Chan & Martin Brumpton & Alison Macintyre & Jefferson Arapoc & David A Savage & Ahmed Skali & David Stadelmann & Benno Torgler, 2020. "How confidence in health care systems affects mobility and compliance during the COVID-19 pandemic," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-18, October.
    14. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
    15. David Smith & Graham Richardson, 1999. "The readability of Australia’s taxation laws and supplemetary materials: an empirical investigation," Fiscal Studies, Institute for Fiscal Studies, vol. 20(3), pages 321-349, September.
    16. Sharon P. Cox & Robert J. Eger III, 2006. "Procedural complexity of tax administration: the road fund case," Journal of Public Budgeting, Accounting & Financial Management, Emerald Group Publishing Limited, vol. 18(3), pages 259-283, March.
    17. repec:diw:diwwpp:dp1748 is not listed on IDEAS
    18. Alfano, Vincenzo & Ercolano, Salvatore & Cicatiello, Lorenzo, 2021. "School openings and the COVID-19 outbreak in Italy. A provincial-level analysis using the synthetic control method," Health Policy, Elsevier, vol. 125(9), pages 1200-1207.
    19. Khairulbahri, Muhamad, 2021. "Lessons learned from three Southeast Asian countries during the COVID-19 pandemic," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1354-1364.
    20. Marco Giesselmann & Alexander Schmidt-Catran, 2018. "Interactions in Fixed Effects Regression Models," Discussion Papers of DIW Berlin 1748, DIW Berlin, German Institute for Economic Research.
    21. Simon James & Ian Wallschutsky, 1997. "Tax law improvement in Australia and the UK: the need for a strategy for simplification," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 445-460, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asay, H. Scott & Libby, Robert & Rennekamp, Kristina, 2018. "Firm performance, reporting goals, and language choices in narrative disclosures," Journal of Accounting and Economics, Elsevier, vol. 65(2), pages 380-398.
    2. Soliman, Marwa & Ben-Amar, Walid, 2022. "Corporate social responsibility orientation and textual features of financial disclosures," International Review of Financial Analysis, Elsevier, vol. 84(C).
    3. Jia, Jing & Li, Zhongtian, 2022. "Risk management committees and readability of risk management disclosure," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(3).
    4. Yao, Yanzhen & Wei, Lu & Jing, Haozhe & Chen, Meiqi & Li, Zhan, 2024. "The impact of readability of risk disclosures in bond prospectuses on credit risk premium," Research in International Business and Finance, Elsevier, vol. 70(PA).
    5. Ahsan Habib & Mostafa Monzur Hasan, 2020. "Business strategies and annual report readability," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(3), pages 2513-2547, September.
    6. Hasan, Mostafa Monzur & Habib, Ahsan, 2020. "Readability of narrative disclosures, and corporate liquidity and payout policies," International Review of Financial Analysis, Elsevier, vol. 68(C).
    7. Alfano, Vincenzo & Guarino, Massimo, 2023. "The effect of self-esteem on the spread of a pandemic. A cross-country analysis of the role played by self-esteem in the spread of the COVID-19 pandemic," Social Science & Medicine, Elsevier, vol. 324(C).
    8. Sun, Li & Johnson, Grace & Bradley, Wray, 2022. "CEO power and annual report reading difficulty," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(2).
    9. Alfano, Vincenzo, 2023. "God or good health? Evidence on belief in God in relation to public health during a pandemic," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    10. Minxing Sun & Weike Xu, 2024. "Short selling and readability in financial disclosures: A controlled experiment," The Financial Review, Eastern Finance Association, vol. 59(2), pages 265-292, May.
    11. Rjiba, Hatem & Saadi, Samir & Boubaker, Sabri & Ding, Xiaoya (Sara), 2021. "Annual report readability and the cost of equity capital," Journal of Corporate Finance, Elsevier, vol. 67(C).
    12. Abukari, Kobana & Dutta, Shantanu & Li, Chen & Tang, Songlian & Zhu, Pengcheng, 2024. "Corporate communication and likelihood of data breaches," International Review of Economics & Finance, Elsevier, vol. 94(C).
    13. Wolfgang Breuer & Andreas Knetsch & Astrid Juliane Salzmann, 2020. "What Does It Mean When Managers Talk About Trust?," Journal of Business Ethics, Springer, vol. 166(3), pages 473-488, October.
    14. Sabri Boubaker & Dimitrios Gounopoulos & Hatem Rjiba, 2019. "Annual report readability and stock liquidity," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 28(2), pages 159-186, May.
    15. Leye Li & Louise Yi Lu & Yi Wang & Yangxin Yu, 2023. "Workforce diversity and financial statement readability," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 1599-1631, April.
    16. Quan Gan & Buhui Qiu, 2021. "The information content of 10‐K file size change," International Review of Finance, International Review of Finance Ltd., vol. 21(4), pages 1251-1285, December.
    17. Vincenzo Alfano, 2022. "Does social capital enforce social distancing? The role of bridging and bonding social capital in the evolution of the pandemic," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 839-859, October.
    18. Muhammad Nadeem, 2022. "Board Gender Diversity and Managerial Obfuscation: Evidence from the Readability of Narrative Disclosure in 10-K Reports," Journal of Business Ethics, Springer, vol. 179(1), pages 153-177, August.
    19. Humphery-Jenner, Mark & Liu, Yun & Nanda, Vikram & Silveri, Sabatino & Sun, Minxing, 2024. "Of fogs and bogs: Does litigation risk make financial reports less readable?," Journal of Banking & Finance, Elsevier, vol. 163(C).
    20. Qian Wang & Duowen Wu & Lina Yan, 2021. "Effect of positive tone in MD&A disclosure on capital structure adjustment speed: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5809-5845, December.

    More about this item

    Keywords

    COVID-19; Readability; Regulations; Law and economics;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:italej:v:10:y:2024:i:2:d:10.1007_s40797-023-00243-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.