Exogenous Shock and Citizen’s Satisfaction with Government Policies: A Functional Data Analysis Approach to Investigate the Role of Previous Financial Crisis and COVID-19

Abstract

The current study examine the extent to which the previous financial crisis affected the level of individual’s approval with government policies in specific three areas: the economy, health and education during this pandemic situation of COVID-19. Data from the European social survey including 14 countries, approximately 195000 observations. Follow up to time series regression, respondents satisfaction level reduce with government economy policy after the crisis, while satisfaction increase for health and education policies. Separate regression for each country confirmed a reliable outline of behavior transpires, although short-range effect on satisfaction was negative and long-standing effect on satisfaction was positive reported. The modification of short-term effect into negative may be due to the effective government policies to overcome the adverse effects of crisis. The pandemic situation of COVID-19 has forced the government to revise the economic, health and educational policies before implantation. Results declared that current crises in third sector also have past influences of financial crisis as well as COVID-19 impact was also recorded.