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COVID-19: ‘Lockdown’ and Institutions

Author

Listed:
  • Massimiliano Ferraresi

    (European Commission Joint Research Centre)

  • Christos Kotsogiannis

    (University of Exeter Business School)

  • Leonzio Rizzo

    (Università di Ferrara e IEB)

  • Riccardo Secomandi

    (Università di Ferrara)

Abstract

To control the infection rate of COVID-19 countries have introduced lockdown measures with the sole purpose to restrict movement of the population. But the impact of those measures has been markedly different. Using data for over 60 countries and employing a difference-in-differences design (and a set of robustness checks) this paper identifies the role of institutions and peoples’ perception of the severity of the spread of COVID-19 in explaining the differential impact of the lockdown measures on movement. The results show that countries with a high level of quality of institutions are less responsive to the implementation of lockdown measures when the perception of the severity of the spread of the virus is low. The implication of this is that when it comes to unexpected shocks, such as the pandemic COVID-19, that require decisive actions and limitation in the movement of individuals as a means of controlling the spread of the shock (and the virus), high quality institutions react rather sluggishly.

Suggested Citation

  • Massimiliano Ferraresi & Christos Kotsogiannis & Leonzio Rizzo & Riccardo Secomandi, 2020. "COVID-19: ‘Lockdown’ and Institutions," Working papers 89, Società Italiana di Economia Pubblica.
    • Handle: RePEc:ipu:wpaper:89
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    References listed on IDEAS

    as
    1. Abel Brodeur & Idaliya Grigoryeva & Lamis Kattan, 2021. "Stay-at-home orders, social distancing, and trust," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(4), pages 1321-1354, October.
    2. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January.
    3. Allcott, Hunt & Boxell, Levi & Conway, Jacob & Gentzkow, Matthew & Thaler, Michael & Yang, David, 2020. "Polarization and public health: Partisan differences in social distancing during the coronavirus pandemic," Journal of Public Economics, Elsevier, vol. 191(C).
    4. Bargain, Olivier & Aminjonov, Ulugbek, 2020. "Trust and compliance to public health policies in times of COVID-19," Journal of Public Economics, Elsevier, vol. 192(C).
    Full references (including those not matched with items on IDEAS)

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    1. Ferraresi, Massimiliano & Kotsogiannis, Christos & Rizzo, Leonzio & Secomandi, Riccardo, 2020. "The ‘Great Lockdown’ and its determinants," Economics Letters, Elsevier, vol. 197(C).

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    More about this item

    Keywords

    Covid-19; lockdown measures; stringency index; mobility; quality of institutions;
    All these keywords.

    JEL classification:

    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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