Abstract

AbstractThis paper explains how informal institutions influence the reaction to the COVID-19 pandemic and the response to formal restrictions. I claim that it is not enough to introduce countermeasures, as individuals must follow them if they are to be effective. The acceptance of such measures is reflected in individuals' degrees of mobility decrease and contact reduction, the aims of governmental restrictions. I identify a group of attitudes connected with individuals' responses that differ across countries. They are associated with social relations and approaches to dealing with problems. The analysis confirms that formal restrictions can be seen as successful only if they are supported by strong informal institutions. In some cases, they even define individuals' reactions more than formal recommendations. The findings are useful not only for explaining the special case of reaction to pandemic restrictions but also for investigating what generally determines individuals' compliance with formal rules.

Highlights

  • In 2020, countries unexpectedly faced a new challenge – the COVID-19 pandemic – and they had to take countermeasures to address it

  • Insights on how to evaluate certain components of informal institutions can be found in the literature concerning trust (Tabellini, 2010; Williamson, 2009; Williamson and Kerekes, 2011), social capital (Knack and Keefer, 1997) and the values transmitted to children, such as obedience, self-determination or respect (Tabellini, 2010; Williamson, 2009; Williamson and Kerekes, 2011)

  • I check the correlation between the index of informal institutions and residential change controlling for total deaths on COVID per million as this is the second strongest relation identified and a very intuitive one

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Summary

Introduction

In the case of the pandemic, societies lacked those deeply rooted habits and faced extensive uncertainty Under such circumstances, state restrictions had some reassuring roles and enabled people to acquire new habits (or change existing ones) and deal with the unprecedented situation. The path dependence concept is generally used to explain the current development situation based on past conditions or events (Acemoglu and Robinson, 2012; Acemoglu et al, 2001, 2002, 2005; North 1994, 2005) or to discuss the outcomes of different reforms (Boettke et al, 2008; Chavance, 2008; Chavance and Magnin, 2000) This logic is important for dealing with the pandemic.

Role of informal institutions
Data and methodology
Empirical results
Robustness tests
Findings
Conclusions
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