Table Of ContentAccounting, Finance, Sustainability, Governance & Fraud:
Theory and Application
Bernur Açıkgöz
İbrahim Attila Acar Editors
Pandemnomics:
The Pandemic’s
Lasting Economic
Effects
Accounting, Finance, Sustainability,
Governance & Fraud: Theory
and Application
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BalkanYerleskesi,Edirne,Turkey
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· ˙
Bernur Açıkgöz Ibrahim Attila Acar
Editors
Pandemnomics:
The Pandemic’s Lasting
Economic Effects
Editors
BernurAçıkgöz ˙IbrahimAttilaAcar
FacultyofBusinessSciences DepartmentofEconomics
andEconomics IzmirKatipCelebiUniversity
IzmirKatipCelebiUniversity Izmir,Turkey
Izmir,Turkey
ISSN2509-7873 ISSN2509-7881 (electronic)
Accounting,Finance,Sustainability,Governance&Fraud:TheoryandApplication
ISBN978-981-16-8023-6 ISBN978-981-16-8024-3 (eBook)
https://doi.org/10.1007/978-981-16-8024-3
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Foreword by Marc Willinger
“Pandemnomics”addressesthemajorchallengeoftheCOVID-19pandemicforthe
globaleconomyandfortheTurkisheconomyinparticular.Deeperthantheeconomic
shockofthe2018financialcrisis,theCOVID-19healthcrisisislikelytohavelasting
and far-reaching effects, not only on the economy, but on society, on health and
on our way of living and seeing the world. The global challenge launched by the
pandemiciswidelydiscussedinthisbook,whichbuildsonanoriginalconceptual
framework,intermsofglobalpublicgoods(bads).Thebookoffersusdiagnosesand
relevantperspectivesonthefutureofoursocieties,withaglobalandalocalvision.
Aspecialfocusisgivenonsomekeyeconomicissues,e.g.publicspending,taxation,
monetarypolicies,cryptocurrenciesanddigitalizationoftheeconomy,andsomekey
socialissues,e.g.migrationsandviralinformation.Iamproudtorecommendthis
booktocuriousanddemandingreaders,asitwasco-authoredbyatalentedwoman,
Bernur,whoisalsomygoodfriend.
MarcWillinger
ProfessorofEconomicsatthe
UniversityofMontpellier(UM)and
MemberoftheCenterfor
EnvironmentalEconomicsof
Montpellier(CEE-M)
v
Foreword by Ronald M. Harstad
A sensible economic analysis of the pandemic due to the virus commonly called
COVID-19, and policies responding to its outbreak, is timely and much needed.
Naturally,epidemiologistsandvirologistshavetakencentrestageineffortstopush
politicalresponsesinsensibledirections.Yetthelong-runandpossiblythenear-term
economicimpactsmayexceedthemedicalimpacts.
This book is thus a fine and key contribution. Surely by early 2023, there will
bemanybooksabouteconomiceffectsofthepandemic.Thelastingcontributionof
AçıkgözandAcarinPandemnomicswilllieinlargepartfromtheTurkishperspective
being prominent, affecting not just Chapter Two, but also the tenor in much of
theirwritinghere.TurkeypresentlysitsoutsidetheUS-EU-Japan-Canada-Australia
accord,includingSouthKorea,Taiwanandotheralliednationswithfairlysimilarper-
capita incomes and political systems. Turkey also sits outside those nations noted
for being politically inimical to that accord; here, Russia, China, Iran and North
Korea are prominent. Of the “double-outsider” nations in neither of these groups,
Turkeyhasperhapsthehighestincomes,greatesteducationalaccomplishmentsand
about the most advanced medical industry and medical research community. Its
policy-reachingandpolicy-implementationstructureissomewhattypicalofdouble-
outsidernations,asistheongoingnatureandbreadthofpoliticalopposition.Forthese
reasons, Pandemnomics will remain particularly relevant both to understanding of
likelyfuturepandemicsandtopolicyconsiderationinmanynationstotallingatleast
acouplebillionpopulation.Wealthiernationswhoseektohelpthemmayalsogain
bytakingnotice;forthis,IparticularlycallattentiontoPartIII.
Ihaveknown,anddeeplyrespected,Prof.Dr.BernurAçıkgözforadecade.Well-
schooled,shecontinuestoaddtoherresearchtoolsandisathoughtful,upbeatand
persistentscholar.Ihavenotyethadtheopportunitytointeractwithherco-author,
Prof.Dr.˙IbrahimAttilaAcar.
RonaldM.Harstad
vii
Acknowledgements
TheworldfacesanewandmoredirethreataftertheSpanishFlu,whichkilled50
millionpeoplein18months100yearsago.Thefactthatscienceandtechniqueare
soadvancedisnotenoughtoeliminatethisthreat.Theriskishigheraspeoplelivein
morecrowdedplacestoday.Theepidemichasmoresevereimpact,theriskisdeadly,
and life has come to a standstill. It should not be forgotten that the contamination
notonlyisintentonhumanlife,butalsoaffectsallareasoflife.
IthasbeenseenthattheCOVID-19,affectingthewholeworldalongwithTurkey
inMarch2020,isnotonlyahealthissue.Weliveinatimethatcontinuesonlywith
the suggestions and directions of the political power and the Ministry of Health.
Themottoofthisperiod,formulatedwiththetrilogyofsocialdistance,masksand
hygiene,willcontinuetoberememberedformanyyears.However,theireffectwill
not only be to get rid of the pandemic; the period will also be referred to with its
differentaspects.
Althoughthecoronavirusitself,whichemergeswiththepandemic,isseenasa
problem,themainissueistheinsufficientserviceandimpotenceofthehealthsector
duetotheepidemic.Afterall,massdeathsinplacessuchasbedandintensivecare
willtriggersocialangerandpanic.Consequently,thisconcernisthecatalystofthe
process;itwillacceleratetheprocess.Panicandfearwillincreasetheeffectsofthe
epidemiconthelifeasawhole.Publicadministrationwillalsobeinsufficienttotidy
uptheorder.Therefore,countrieswillnotbeabletohavehealthyreactionsintimes
ofpanic.
Atthebeginningoftheperiod,theUSAannouncedapackageof1trilliondollars
togetitseconomyoutofthiscrisis.TheFEDmadeacommitmenttopurchase$700
billion in bonds. After IMF President Kristalina Georgieva said “We are ready to
give the necessary support to every country”, the first application came from Iran.
Unconditionalsurrender:aslongassupportisgiven…IntheperiodofMarch2020,
thenumberofcountriesthatmetwiththeIMF,includingIran,reached100.
Themostimportantdeficiencyaboutthisperiod,whichreshapesourwholelives
today, is that the issue is treated as a pure health issue. However, the lifestyle is
forcedtochangeasawhole.Therefore,itisnecessarytoexaminetheareasthatthe
pandemichasforcedtochange,apartfromhealth.
ix
x Acknowledgements
The subject has many historical, legal, social, psychological, technical and
economic dimensions. It is not just about a simple flu case. We are at the begin-
ningofaprocessthatcanhaveanimpactformanyyears.Inthisprocess,thisbook
aimstodiscussthepandemicissueindepth,bybringingthefieldexpertstogether.
ThebookiscomposedofthreeParts:
Part I addresses the global public nature of the COVID-19 pandemic, the fiscal
policies implemented in epidemics from past to present and increasing public
expenditures.
PartIIiscomposedofthestudiesaddressingtheissueintermsofTurkisheconomy.
Four studies are included in this part. The evaluation of COVID-19 in terms
of Turkish Tax Law and an empirical research on tax perception in this period
includesevaluationsontheincomesideofthispart.Evaluationsonthecostsideare
addressedintwodifferentstudies.Thefirstoneanalysesthetransferexpenditures
dimension, whereas the other study analyses the support provided by various
countriesduringthepandemicandtheevaluationsonthebudgetmanagementin
Turkey.
PartIIIincludesprojectionsregardingtheCOVID-19pandemic.Therearefour
studiesinthispart.Ofcourse,attentionhasbeendrawntothefutureofpossible
financial trends after the epidemic. In addition to the technological side of the
subjectandrobotization,digitalcurrenciesareexaminedinthispart.Theissueof
refugees,whoarethevictimsofthedeepestproblemsoftheworldandoneofthe
mostvulnerablesegments,hasalsotakenitsplaceinthisbookasthevictimsof
thisage.Thestudy,inwhichthecontentoftheincreasingsocialmediasharesof
peoplestayingathomeandlivingwithsocialdistancingconcernsaresubjected
tobigdataanalysis,constitutesthefinalstudyofthebook.
Thebookisaproductofgreateffortandself-devotion.Wethankallresearchers
and experts who contributed to the process and we hope that the study will be
beneficialtostudents,researchersandeveryonewhoareinterestedinthesubject.
˙Izmir,Turkey Prof.Dr.BernurAçıkgöz
March2021 Prof.Dr.˙IbrahimAttilaAcar
Contents
PartI PandemicandPublicEconomy
1 Evaluation for COVID-19 Outbreak Public Policies
intheWorldWithintheScopeofGlobalPublicGoods(GPGs) .... 3
BernurAçıkgöz
2 GlobalOutbreaksfromaHistoricalPerspectiveandFiscal
Policy:AnAnalysisforCOVID-19Outbreak .................... 17
SibelAybarç
3 IncreasingPublicExpendituresDuetoCOVID-19Pandemic
Crisis: An Assessment According to Peacock-Wiseman
Hypothesis ................................................... 41
MelihKabayelandAlperDog˘an
4 InternalAuditinTimesofCrisis:TheCaseofCOVID-19 ......... 65
TurgayÇag˘layanandHalisKıral
PartII PandemicinTurkishEconomy
5 FinancialMeasuresTakeninTurkeyandSelectedCountries
inCombattingCOVID-19Outbreak ............................ 85
TülinCanbayandHilalBalcıCura
6 PublicTransferExpendituresinCombattingtheEconomic
ImpactofCOVID-19Pandemic: Turkey CaseandPolicy
Suggestions ................................................... 99
YaprakKaradag˘ Duymazlar
7 Effect of COVID-19 Pandemic on Tax Perception:
AnEmpiricalStudy ........................................... 117
BurhanettinOnurKireçtepeandBernurAçıkgöz
xi
