The Political Scar of Epidemics

76 Pages Posted: 16 Jun 2020

See all articles by Cevat Aksoy

Cevat Aksoy

University College London

Barry Eichengreen

University of California, Berkeley; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Orkun Saka

City, University of London; London School of Economics; Systemic Risk Centre & STICERD; CESifo Network

Date Written: June 2020

Abstract

What will be political legacy of the Coronavirus pandemic? We find that epidemic exposure in an individual's "impressionable years" (ages 18 to 25) has a persistent negative effect on confidence in political institutions and leaders. We find similar negative effects on confidence in public health systems, suggesting that the loss of confidence in political leadership and institutions is associated with healthcare-related policies at the time of the epidemic. In line with this argument, our results are mostly driven by individuals who experienced epidemics under weak governments with less capacity to act against the epidemic, disappointing their citizens. We provide evidence of this mechanism by showing that weak governments took longer to introduce policy interventions in response to the COVID-19 outbreak. These results imply that the Coronavirus may leave behind a long-lasting political scar on the current young generation ("Generation Z").

Keywords: democracy, Epidemics, political approval, Trust

JEL Classification: D72, F50, I19

Suggested Citation

Aksoy, Cevat and Eichengreen, Barry and Saka, Orkun, The Political Scar of Epidemics (June 2020). CEPR Discussion Paper No. DP14879, Available at SSRN: https://ssrn.com/abstract=3628200

Cevat Aksoy (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Barry Eichengreen

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Orkun Saka

City, University of London ( email )

Northampton Square
London, EC1V OHB
United Kingdom

London School of Economics

Houghton Street
London, WC2A 2AE
United Kingdom

Systemic Risk Centre & STICERD

Houghton Street
London, WC2A 2AE
United Kingdom

CESifo Network

Poschinger Str. 5
Munich, DE-81679
Germany

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