Countries with more democratic political regimes experienced greater GDP loss and more deaths from Covid-19 in 2020. Using ﬁve diﬀerent instrumental variable strategies, we ﬁnd that democracy is a major cause of the wealth and health losses. This impact is global and is not driven by China and the US alone. A key channel for democracy’s negative impact is weaker and narrower containment policies at the beginning of the outbreak, not the speed of introducing policies.
Narita, Yusuke and Sudo, Ayumi, "Curse of Democracy: Evidence from 2020" (2021). Cowles Foundation Discussion Papers. 2612.