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COVID-19 and people's health-wealth preferences: Information effects and policy implications

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  • Heap, Shaun Hargreaves
  • Koop, Christel
  • Matakos, Konstantinos
  • Unan, Asli
  • Weber, Nina Sophie

Abstract

Policy makers responding to COVID-19 need to know people’s relative valuation of health over wealth. Loosening and tightening lockdowns moves a society along a (perceived) health-wealth trade-off and the associated changes have to accord with the public’s relative valuation of health and wealth for maximum compliance. In our survey experiment (N=4,618), we randomize information provision on economic and health costs to assess public preferences over this trade-off in the UK and the US. People strongly prioritize health over wealth, but the treatment effects suggest these priorities will change as experience of COVID-19 deaths and income losses evolves. Information also has heterogeneous/polarizing effects. These results encourage policy caution. Individual differences in health-wealth valuation highlight this study’s importance because they map onto compliance with current lockdown measures.

Suggested Citation

  • Heap, Shaun Hargreaves & Koop, Christel & Matakos, Konstantinos & Unan, Asli & Weber, Nina Sophie, 2020. "COVID-19 and people's health-wealth preferences: Information effects and policy implications," SocArXiv mz67j, Center for Open Science.
    • Handle: RePEc:osf:socarx:mz67j
    DOI: 10.31219/osf.io/mz67j
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    References listed on IDEAS

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    1. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    2. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
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    Cited by:

    1. Fazio, Andrea & Reggiani, Tommaso & Sabatini, Fabio, 2022. "The political cost of sanctions: Evidence from COVID-19," Health Policy, Elsevier, vol. 126(9), pages 872-878.
    2. Fazio, Andrea & Reggiani, Tommaso G. & Sabatini, Fabio, 2021. "The Political Cost of Lockdown's Enforcement," IZA Discussion Papers 14032, Institute of Labor Economics (IZA).
    3. Antoci, Angelo & Sabatini, Fabio & Sacco, Pier Luigi & Sodini, Mauro, 2022. "Experts vs. policymakers in the COVID-19 policy response," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 22-39.
    4. Laliotis, Ioannis & Minos, Dimitrios, 2022. "Religion, social interactions, and COVID-19 incidence in Western Germany," European Economic Review, Elsevier, vol. 141(C).
    5. Francis de Véricourt, & Huseyin Gurkan, & Shouqiang Wang,, 2020. "Informing the public about a pandemic," ESMT Research Working Papers ESMT-20-03, ESMT European School of Management and Technology.
    6. Francis de Véricourt, & Huseyin Gurkan, & Shouqiang Wang,, 2020. "Informing the public about a pandemic," ESMT Research Working Papers ESMT-20-03, ESMT European School of Management and Technology, revised 11 Feb 2021.
    7. Vincenzo Carrieri & Maria De Paola & Francesca Gioia, 2021. "The health-economy trade-off during the Covid-19 pandemic: Communication matters," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-25, September.
    8. Laliotis, Ioannis & Minos, Dimitrios, 2020. "Spreading the disease: The role of culture," SocArXiv z4ndc, Center for Open Science.

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