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The lockdown effect: A counterfactual for Sweden

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  • Born, Benjamin
  • Dietrich, Alexander
  • Müller, Gernot

Abstract

While most countries imposed a lockdown in response to the first wave of COVID-19 infections, Sweden did not. To quantify the lockdown effect, we approximate a counterfactual lockdown scenario for Sweden through the outcome in a synthetic control unit. We find, first, that a 9-week lockdown in the first half of 2020 would have reduced infections and deaths by about 75% and 38%, respectively. Second, the lockdown effect starts to materialize with a delay of 3-4 weeks only. Third, the actual adjustment of mobility patterns in Sweden suggests there has been substantial voluntary social restraint, although the adjustment was less strong than under the lockdown scenario. Lastly, we find that a lockdown would not have caused much additional output loss.

Suggested Citation

  • Born, Benjamin & Dietrich, Alexander & Müller, Gernot, 2020. "The lockdown effect: A counterfactual for Sweden," CEPR Discussion Papers 14744, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14744
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    More about this item

    Keywords

    Covid-19; Lockdown; Counterfactual; Synthetic control unit; Voluntary social restraint; Google mobility reports; Output loss;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • E0 - Macroeconomics and Monetary Economics - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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