Since COVID-19 was declared a pandemic, countries on the same pandemic trajectory have adopted very different lockdown strategies. Using data for over 132 countries, and employing an event-study design, this paper identifies the role of political, economic and institutional factors in explaining the differential timing and intensity of stringency measures undertaken.
Intermunicipal cooperation is a common way to provide local public services, exploit economies of scale, and internalize externalities.However, little is known about possible efficiency gains. We test their existence in terms of local public expenditures reductions, by investigating the Italian experience of municipal unions. We adopt quasiexperimental methodologies using administrative data on municipalities in the Emilia Romagna region. We find that being in a municipal union reduces the total per capita current expenditures by around 5 percent, without affecting the level of local public services. The effect is robust, persistent, and increasing up to six years after entrance.
We exploit the natural experimental setting provided by the Covid-19 lockdown to analyse how performance is affected by a friendly audience. Specifically, we use data on all football matches in the top-level competitions across France, Germany, Italy, Spain, and the United Kingdom over the 2019/2020 season. We compare the difference between the number of points gained by teams playing at home and teams competing away before the Covid-19 outbreak, when supporters could attend any match, with the same difference after the lockdown, when all matches took place behind closed doors. We find that the performance of the home team is halved when stadiums are empty. Further analyses indicate that offensive (defensive) actions taken by the home team are drastically reduced (increased) once games are played behind closed doors. Referees are affected too, as they change their behaviour in games without spectators. Finally, the home advantage is entirely driven by teams that do not have international experience. Taken together, our findings corroborate the hypothesis that social pressure influences individual behaviour.
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