Input Price Controls As a Means to Reduce Bankruptcies in the Corona Crisis

Abstract

The public health measures taken to combat the corona virus are having a direct negative effect on a number of industries. To help avoid bankruptcies and rescue aid from the government, it is useful to shift part of the direct costs of the public health measures from the companies that sell the final goods to the suppliers of their inputs. This could be realized by emergency laws to strongly reduce certain input prices, such as pub rents, football player wages, and airplane lease prices.