The COVID-19 Pandemic: Collective Action and European Public Policy under Stress

Law & Economics of COVID-19 Working Paper Series: 03/20201

21 Pages Posted: 13 Apr 2020 Last revised: 24 Apr 2020

See all articles by Mitja Kovac

Mitja Kovac

University of Ljubljana School of Economics and Business

Amira Elkanawati

University of Ljubljana School of Economics and Business

Vita Gjikolli

University of Ljubljana School of Economics and Business

Ann-Sophie Vandenberghe

Erasmus University Rotterdam School of Law, Rotterdam Institute of Law and Economics

Date Written: April 11, 2020

Abstract

The European continent faces an apocalyptic pandemic that poses mortal danger to millions of citizens. This paper seeks to address the role played by European public policy in addressing the COVID-19 pandemic. Currently, each Member State across Europe is applying its own measures to deal with the coronavirus; namely, decentralised decision-making that could trigger political tensions among the states. The paper argues that European public policy must change rapidly and fundamentally if these tensions are to be successfully managed; otherwise, such policy might simply cease to exist. Moreover, the known and notorious problem of collective action, information asymmetries, irrationality, negative externalities and the related free-riding phenomenon persistently are distorting the Member States’ combined efforts, resulting in deficient attempts to contain the spread of COVID-19. The paper also argues that the current unprecedented outbreak of this superspreading virus calls for a bigger EU-wide coordinated response. We argue that the COVID-19 pandemic is a good example of an area in which the central EU level holds a comparative advantage over lower levels of government. In addition, the paper offers several substantive insights into ways to improve the public policy response in the “war” against COVID-19.

Keywords: COVID-19 pandemic, negative externality, collective action problem, coordination, economics of federalism

JEL Classification: C23, C26, C51, K42, O43

Suggested Citation

Kovac, Mitja and Elkanawati, Amira and Gjikolli, Vita and Vandenberghe, Ann-Sophie, The COVID-19 Pandemic: Collective Action and European Public Policy under Stress (April 11, 2020). Law & Economics of COVID-19 Working Paper Series: 03/20201, Available at SSRN: https://ssrn.com/abstract=3573417 or http://dx.doi.org/10.2139/ssrn.3573417

Mitja Kovac (Contact Author)

University of Ljubljana School of Economics and Business ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Amira Elkanawati

University of Ljubljana School of Economics and Business ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Vita Gjikolli

University of Ljubljana School of Economics and Business ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Ann-Sophie Vandenberghe

Erasmus University Rotterdam School of Law, Rotterdam Institute of Law and Economics ( email )

Campus Woudestein Burgemeester Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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