Norwegian and US Policies Alleviate Business Vulnerability Due to the Covid-19 Shock Equally Well
Author | : Annette Alstadsæter |
Publisher | : |
Total Pages | : |
Release | : 2020 |
ISBN-10 | : OCLC:1184102532 |
ISBN-13 | : |
Rating | : 4/5 (32 Downloads) |
Book excerpt: We use Norwegian administrative data and applications for emergency government support to simulate magnitude and distribution of business revenue shock due to the Covid-19 pandemic. We rely on it to analyze the impact of business support policies available in Norway and the United States by comparing simulated results from the various policies on a common data set. We find that policies supporting payroll and fixed costs that were available in both countries have a similar impact of reducing firms' economic distress, by cutting the negative effect of the crisis on profitability, liquidity, debt, and solvency by over a half.