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In a State of Emergency: Crisis Management, Institutions and Economic Growth

Vallin, Gustav LU (2017) NEKH04 20171
Department of Economics
Abstract
Since its first recorded instance, the state of emergency has become an integral aspect of the modern nation state’s legal apparatus and is a crucial mode of government crisis management. A state of emergency entails a temporary suspension of the rule of law and deviation from the protection of civil liberties. Emergency powers have been examined considerably within the fields of political science and human rights law. Contrariwise, their effect on economic activity and growth has hitherto not been systematically assessed. The purpose of this paper is to provide a tentative theoretical and empirical framework by which the economic effects of a state of emergency can be evaluated.

A modification of the difference-in-differences method is... (More)
Since its first recorded instance, the state of emergency has become an integral aspect of the modern nation state’s legal apparatus and is a crucial mode of government crisis management. A state of emergency entails a temporary suspension of the rule of law and deviation from the protection of civil liberties. Emergency powers have been examined considerably within the fields of political science and human rights law. Contrariwise, their effect on economic activity and growth has hitherto not been systematically assessed. The purpose of this paper is to provide a tentative theoretical and empirical framework by which the economic effects of a state of emergency can be evaluated.

A modification of the difference-in-differences method is employed in order to assess the effect of a state of emergency on short-term economic growth. The results of the empirical analysis neither proves nor disproves the hypothesis that emergency powers can lead to a relative increase in the growth rate. However, they give credence to the claim that stable political institutions and government respect for civil liberties contribute positively to economic growth during episodes of conflict or times of socio-political instability. It is believed that this result indirectly contributes to the evaluation of the possible economic effects of a state of emergency. (Less)
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author
Vallin, Gustav LU
supervisor
organization
course
NEKH04 20171
year
type
M2 - Bachelor Degree
subject
keywords
state of emergency, economic growth, democracy, institutions, crisis management
language
English
id
8913094
date added to LUP
2017-07-10 15:09:17
date last changed
2017-07-10 15:09:17
@misc{8913094,
  abstract     = {Since its first recorded instance, the state of emergency has become an integral aspect of the modern nation state’s legal apparatus and is a crucial mode of government crisis management. A state of emergency entails a temporary suspension of the rule of law and deviation from the protection of civil liberties. Emergency powers have been examined considerably within the fields of political science and human rights law. Contrariwise, their effect on economic activity and growth has hitherto not been systematically assessed. The purpose of this paper is to provide a tentative theoretical and empirical framework by which the economic effects of a state of emergency can be evaluated.

A modification of the difference-in-differences method is employed in order to assess the effect of a state of emergency on short-term economic growth. The results of the empirical analysis neither proves nor disproves the hypothesis that emergency powers can lead to a relative increase in the growth rate. However, they give credence to the claim that stable political institutions and government respect for civil liberties contribute positively to economic growth during episodes of conflict or times of socio-political instability. It is believed that this result indirectly contributes to the evaluation of the possible economic effects of a state of emergency.},
  author       = {Vallin, Gustav},
  keyword      = {state of emergency,economic growth,democracy,institutions,crisis management},
  language     = {eng},
  note         = {Student Paper},
  title        = {In a State of Emergency: Crisis Management, Institutions and Economic Growth},
  year         = {2017},
}