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“Long GFC†? The Global Financial Crisis, Health Care, and COVID-19 Deaths

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  • Ongena, Steven
  • Moreno Ibáñez, Antonio
  • Ventula Veghazy, Alexia
  • Wagner, Alexander F.

Abstract

Do financial-economic crises affect long-term public health? To answer this question, we study the connection between the 2007-2009 Global Financial Crisis and the 2020-2022 COVID-19 pandemic. Specifically, we examine the relation between both macroeconomic and financial losses derived from the financial crisis and the health outcomes associated with the first wave of the pandemic. At the European level, countries more affected by the financial crisis had more deaths relative to coronavirus cases. An analogous relation emerges across Spanish provinces and US states. Part of the transmission from finance to health outcomes appears to have occurred through cross-sectional differences in health care facilities. Therefore, dampening financial-economic instability may yield long-term societal benefits.

Suggested Citation

  • Ongena, Steven & Moreno Ibáñez, Antonio & Ventula Veghazy, Alexia & Wagner, Alexander F., 2022. "“Long GFC†? The Global Financial Crisis, Health Care, and COVID-19 Deaths," CEPR Discussion Papers 15900, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15900
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    Cited by:

    1. Hubert Gabrisch, 2021. "Die prekäre alte Normalität der EU und die Notwendigkeit zur Reform [The EU’s Precarious Old Normal and the Need for Reform]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(10), pages 814-820, October.

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    More about this item

    Keywords

    Global financial crisis; Covid-19; Local sovereign debt; Death ratio; Curative beds;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H1 - Public Economics - - Structure and Scope of Government

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