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.jpg): Failed to open stream: No such file or directory in C:\Inetpub\vhosts\kidney.de\httpdocs\pget.php on line 117 J+Behav+Exp+Finance
2020 ; 27
(ä): 100371
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Economic impact of government interventions during the COVID-19 pandemic:
International evidence from financial markets
#MMPMID32835011
Ashraf BN
J Behav Exp Finance
2020[Sep]; 27
(ä): 100371
PMID32835011
show ga
The outbreak of COVID-19 pandemic came as a rare, unprecedented event and
governments around the globe scrambled with emergency actions including social
distancing measures, public awareness programs, testing and quarantining
policies, and income support packages. In this paper, we examine the expected
economic impact of government actions by analyzing the effect of such actions on
stock market returns. Using daily data from January 22 to April 17, 2020 from 77
countries, we find announcements of government social distancing measures have a
direct negative effect on stock market returns due to their adverse effect on
economic activity, while an indirect positive effect through the reduction in
COVID-19 confirmed cases. Government announcements regarding public awareness
programs, testing and quarantining policies, and income support packages largely
result in positive market returns. Our findings have important policy
implications, primarily by showing that government social distancing measures
have both positive and negative economic impact.