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Health politics? Determinants of US states’ reactions to COVID-19

Author

Listed:
  • Etienne Farvaque

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Hira Iqbal

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Nicolas Ooghe

Abstract

Were policy responses of the US states to the pandemic driven by partisan politics or by budgetary reasons? We show that balanced-budget rules also had an impact, mediated by the possibility of benefiting from the funds previously stored in budget stabilisation funds. State policymakers tried to square the circle by simultaneously respecting budget rules, limiting the economic impact of the social distancing measures, combating the pandemic and pandering to their political bases. Some fiscal rules have induced a trade-off between health and public finance, which may reignite the debate on the pro-cyclicality of fiscal rules.

Suggested Citation

  • Etienne Farvaque & Hira Iqbal & Nicolas Ooghe, 2020. "Health politics? Determinants of US states’ reactions to COVID-19," Post-Print hal-03128875, HAL.
    • Handle: RePEc:hal:journl:hal-03128875
    DOI: 10.1332/251569120X16040852770342
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