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Cross-Country Comparisons of Covid-19: Policy, Politics and the Price of Life

Author

Listed:
  • Ben Balmford

    (University of Exeter Business School)

  • James D. Annan

    (Blue Skies Research, Ltd)

  • Julia C. Hargreaves

    (Blue Skies Research, Ltd)

  • Marina Altoè

    (Innovation, Impact and Business, University of Exeter)

  • Ian J. Bateman

    (University of Exeter Business School)

Abstract

Coronavirus has claimed the lives of over half a million people world-wide and this death toll continues to rise rapidly each day. In the absence of a vaccine, non-clinical preventative measures have been implemented as the principal means of limiting deaths. However, these measures have caused unprecedented disruption to daily lives and economic activity. Given this developing crisis, the potential for a second wave of infections and the near certainty of future pandemics, lessons need to be rapidly gleaned from the available data. We address the challenges of cross-country comparisons by allowing for differences in reporting and variation in underlying socio-economic conditions between countries. Our analyses show that, to date, differences in policy interventions have out-weighed socio-economic variation in explaining the range of death rates observed in the data. Our epidemiological models show that across 8 countries a further week long delay in imposing lockdown would likely have cost more than half a million lives. Furthermore, those countries which acted more promptly saved substantially more lives than those that delayed. Linking decisions over the timing of lockdown and consequent deaths to economic data, we reveal the costs that national governments were implicitly prepared to pay to protect their citizens as reflected in the economic activity foregone to save lives. These ‘price of life’ estimates vary enormously between countries, ranging from as low as around $100,000 (e.g. the UK, US and Italy) to in excess of $1million (e.g. Denmark, Germany, New Zealand and Korea). The lowest estimates are further reduced once we correct for under-reporting of Covid-19 deaths.

Suggested Citation

  • Ben Balmford & James D. Annan & Julia C. Hargreaves & Marina Altoè & Ian J. Bateman, 2020. "Cross-Country Comparisons of Covid-19: Policy, Politics and the Price of Life," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 525-551, August.
  • Handle: RePEc:kap:enreec:v:76:y:2020:i:4:d:10.1007_s10640-020-00466-5
    DOI: 10.1007/s10640-020-00466-5
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    2. Liqing Li & Dede Long & Mani Rouhi Rad & Matthew R Sloggy, 2021. "Stay-at-home orders and the willingness to stay home during the COVID-19 pandemic: A stated-preference discrete choice experiment," PLOS ONE, Public Library of Science, vol. 16(7), pages 1-20, July.
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    4. Panarello, Demetrio & Tassinari, Giorgio, 2022. "One year of COVID-19 in Italy: are containment policies enough to shape the pandemic pattern?," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    5. Atik Winanti & SULASTRI & SATINO & Handar Subhandi Bakhtiar, 2022. "The roles of governments in implementing large-scale social restrictions to accelerate Covid-19 handling," Journal of Community Positive Practices, Catalactica NGO, issue 1, pages 77-85.
    6. Pongou, Roland & Tchuente, Guy & Tondji, Jean-Baptiste, 2021. "Optimally Targeting Interventions in Networks during a Pandemic: Theory and Evidence from the Networks of Nursing Homes in the United States," GLO Discussion Paper Series 957, Global Labor Organization (GLO).
    7. Ahmed Rakha & Hansi Hettiarachchi & Dina Rady & Mohamed Medhat Gaber & Emad Rakha & Mohammed M. Abdelsamea, 2021. "Predicting the Economic Impact of the COVID-19 Pandemic in the United Kingdom Using Time-Series Mining," Economies, MDPI, vol. 9(4), pages 1-19, September.
    8. Brandily, Paul & Brébion, Clément & Briole, Simon & Khoury, Laura, 2021. "A poorly understood disease? The impact of COVID-19 on the income gradient in mortality over the course of the pandemic," European Economic Review, Elsevier, vol. 140(C).
    9. David Cook & Lára Jóhannsdóttir, 2021. "Impacts, Systemic Risk and National Response Measures Concerning COVID-19—The Island Case Studies of Iceland and Greenland," Sustainability, MDPI, vol. 13(15), pages 1-17, July.
    10. Paul Brandily & Clément Brébion & Simon Briole & Laura Khoury, 2021. "A Poorly Understood Disease? The Evolution of the Income Gradient in Excess Mortality Due to COVID-19 within Urban Areas," Working Papers halshs-03154551, HAL.
    11. Zhaohui Su, 2021. "Rigorous Policy-Making Amid COVID-19 and Beyond: Literature Review and Critical Insights," IJERPH, MDPI, vol. 18(23), pages 1-17, November.
    12. Roland Pongou & Guy Tchuente & Jean-Baptiste Tondji, 2021. "Optimally Targeting Interventions in Networks during a Pandemic: Theory and Evidence from the Networks of Nursing Homes in the United States," Papers 2110.10230, arXiv.org.
    13. Stefania Kerekes & Ariadna Georgiana-Eugenia Badea & Dragos Paun, 2021. "Analyzing Lockdown Policies and Their Effectiveness in Romania and Hungary," Challenges, MDPI, vol. 12(2), pages 1-8, August.
    14. Roland Pongou & Guy Tchuente & Jean-Baptiste Tondji, 2023. "Optimal interventions in networks during a pandemic," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 847-883, April.
    15. Baining Zhao & Xuzhe Wang & Tianyu Zhang & Rongye Shi & Fengli Xu & Fanhang Man & Erbing Chen & Yang Li & Yong Li & Tao Sun & Xinlei Chen, 2024. "Estimating and modeling spontaneous mobility changes during the COVID-19 pandemic without stay-at-home orders," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    16. Thomas Gries & Paul J. J. Welfens, 2021. "Testing as an approach to control the Corona epidemic dynamics and avoid lockdowns," International Economics and Economic Policy, Springer, vol. 18(1), pages 1-24, February.
    17. Jorge Quintas & Ana Guerreiro & Maria João Leote de Carvalho & Vera Duarte & Ana Rita Pedro & Ana Filipa Gama & Inês Keygnaert & Sónia Dias, 2022. "The Implication of the First Wave of COVID-19 on Mental Health: Results from a Portuguese Sample," IJERPH, MDPI, vol. 19(11), pages 1-12, May.
    18. Fezzi, Carlo & Fanghella, Valeria, 2021. "Tracking GDP in real-time using electricity market data: Insights from the first wave of COVID-19 across Europe," European Economic Review, Elsevier, vol. 139(C).
    19. Vinicius Albani & Matheus Grasselli & Weijie Pang & Jorge P. Zubelli, 2022. "The Interplay between COVID-19 and the Economy in Canada," JRFM, MDPI, vol. 15(10), pages 1-26, October.
    20. Etienne Dagorn & Léonard Moulin, 2023. "Dropping Out of University in Response to the COVID-19 Pandemic," Working Papers 276, French Institute for Demographic Studies.
    21. Francisco G. Emmerich, 2021. "Comparisons between the Neighboring States of Amazonas and Pará in Brazil in the Second Wave of COVID-19 Outbreak and a Possible Role of Early Ambulatory Treatment," IJERPH, MDPI, vol. 18(7), pages 1-18, March.

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