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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
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    References listed on IDEAS

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    4. John M. Barrios & Yael Hochberg, 2020. "Risk Perception Through the Lens of Politics in the Time of the COVID-19 Pandemic," NBER Working Papers 27008, National Bureau of Economic Research, Inc.
    5. Saidi, Farzad & Alfaro, Laura & Faia, Ester & Lamersdorf, Nora, 2020. "Social Interactions in Pandemics: Fear, Altruism, and Reciprocity," CEPR Discussion Papers 14716, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Robert J. Sonora & Josip Tica, 2024. "Individual Behavior and Policy Response in Times of a Pandemic," EFZG Working Papers Series 2402, Faculty of Economics and Business, University of Zagreb.

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    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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