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Does individual behavior converge to policy recommendations in times of pandemic? Evidence from COVID-19 in US states

Author

Listed:
  • Robert J. Sonora

    (Faculty of Economics and Business, University of Zagreb)

  • Martina Gottwald-Belinić

    (Faculty of Economics and Business, University of Zagreb)

Abstract

The COVID-19 pandemic is an exceptional shock on human habitual behavior and provides a rare opportunity to analyze resilience in preferences. We use Google's mobility and policy stringency indices to investigate if policy maker and resident „preferences" align over the period. Differences in utility across the ten largest states in the United States should lead to idiosyncratic response on perceived cost of restrictions and associated risk attitudes in policy respond. We conduct structural break and rolling unit root tests on estimated residual. Our results suggest that individual behavior converges to the policy prescriptions within the time span up to 18 months.

Suggested Citation

  • Robert J. Sonora & Martina Gottwald-Belinić, 2023. "Does individual behavior converge to policy recommendations in times of pandemic? Evidence from COVID-19 in US states," EFZG Working Papers Series 2304, Faculty of Economics and Business, University of Zagreb.
    • Handle: RePEc:zag:wpaper:2304
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; individual risk behavior; structural break; unit root tests;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E70 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - General
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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