Abstract
U.S. states have implemented lockdown measures to contain the COVID-19 pandemic. We assess the impact of state policy responses on local economic and health conditions, with the goal to shed light on marginal health benefits and economic costs associated with social distancing. We find that lockdown measures are effective in alleviating disease severity, but yield significant contraction of the economy. Deteriorating health conditions are disruptive to the labor supply, financial health, and economic output. The adverse economic impact of lockdowns exceeds the economic damage brought by the disease itself, but health conditions have better ability of forecasting economic contraction outcomes.
Highlights
The world is confronting a joint health and economic crisis of unprecedented severity.On 11 March 2020, the World Health Organization (WHO) declared the highly infectious coronavirus disease (COVID-19) to be a pandemic
Did policy actions to contain the spread of the COVID-19 disease save and sustain lives? Did such mitigation interventions have detrimental effects on the economic conditions of an average citizen and firm? these questions are the focus of attention for communities, public health experts, and policymakers, to our knowledge, there is no academic research directly linking the joint impact of public-health measures and disease severity to various local economic and health outcomes
With respect to the relative severity of the disease and social policy outcomes, we show that disease fatalities have a more notable negative economic impact compared to disease cases, but the economic impact of health conditions is relatively smaller than the economic effects of state policy measures
Summary
The impact of COVID-19 and its policy responses on local economy and health conditions. Suggested Citation: Gungoraydinoglu, Ali; Öztekin, Ilke; Öztekin, Özde (2021) : The impact of COVID-19 and its policy responses on local economy and health conditions, Journal of Risk and Financial Management, ISSN 1911-8074, MDPI, Basel, Vol 14, Iss. 6, pp. Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen. Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence
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