7,990 Matching Annotations
- Aug 2020
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www.nature.com www.nature.com
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The impact of pandemics is magnified by the coexistence of two contradicting reactions to rare dire risks: panic and the ‘it won’t happen to me’ effect that hastens spread of the disease. We review research that clarifies the conditions that trigger the two biases, and we highlight the potential of gentle rule enforcement policies that can address these problematic conditions.
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arxiv.org arxiv.org
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Many spreading processes in our real-life can be considered as a complex contagion, and the linear threshold (LT) model is often applied as a very representative model for this mechanism. Despite its intensive usage, the LT model suffers several limitations in describing the time evolution of the spreading. First, the discrete-time step that captures the speed of the spreading is vaguely defined. Second, the synchronous updating rule makes the nodes infected in batches, which can not take individual differences into account. Finally, the LT model is incompatible with existing models for the simple contagion. Here we consider a generalized linear threshold (GLT) model for the continuous-time stochastic complex contagion process that can be efficiently implemented by the Gillespie algorithm. The time in this model has a clear mathematical definition and the updating order is rigidly defined. We find that the traditional LT model systematically underestimates the spreading speed and the randomness in the spreading sequence order. We also show that the GLT model works seamlessly with the susceptible-infected (SI) or susceptible-infected-recovered (SIR) model. One can easily combine them to model a hybrid spreading process in which simple contagion accumulates the critical mass for the complex contagion that leads to the global cascades. Overall, the GLT model we proposed can be a useful tool to study complex contagion, especially when studying the time evolution of the spreading.
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journals.plos.org journals.plos.org
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Understanding the behavior of emerging disease outbreaks in, or ahead of, real-time could help healthcare officials better design interventions to mitigate impacts on affected populations. Most healthcare-based disease surveillance systems, however, have significant inherent reporting delays due to data collection, aggregation, and distribution processes. Recent work has shown that machine learning methods leveraging a combination of traditionally collected epidemiological information and novel Internet-based data sources, such as disease-related Internet search activity, can produce meaningful “nowcasts” of disease incidence ahead of healthcare-based estimates, with most successful case studies focusing on endemic and seasonal diseases such as influenza and dengue. Here, we apply similar computational methods to emerging outbreaks in geographic regions where no historical presence of the disease of interest has been observed. By combining limited available historical epidemiological data available with disease-related Internet search activity, we retrospectively estimate disease activity in five recent outbreaks weeks ahead of traditional surveillance methods. We find that the proposed computational methods frequently provide useful real-time incidence estimates that can help fill temporal data gaps resulting from surveillance reporting delays. However, the proposed methods are limited by issues of sample bias and skew in search query volumes, perhaps as a result of media coverage.
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With so much information available about the severity of the coronavirus and the need to follow guidelines, some people still refuse to accept reality. The denial manifests itself in many ways, whether that be refusing to wear a mask or attending large gatherings. Using denial as a coping mechanism is not always a bad choice. Short-term, it gives someone the time to adjust to a situation. When it becomes a long-term crutch and puts others in harm's way, it can be dangerou
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www.espn.com www.espn.com
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The U.S. Food and Drug Administration issued an emergency authorization on Saturday allowing public use of a saliva-based test for the coronavirus developed at Yale University and funded by the NBA and the National Basketball Players Association.The test, known as SalivaDirect, is designed for widespread public screening. The cost per sample could be as low as about $4, though the cost to consumers will likely be higher than that -- perhaps around $15 or $20 in some cases, according to expert sources.
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www.latimes.com www.latimes.com
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Science is suffering from a replication crisis. Too many landmark studies can’t be repeated in independent labs, a process crucial to separating flukes and errors from solid results. The consequences are hard to overstate: Public policy, medical treatments and the way we see the world may have been built on the shakiest of foundations.
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To slow the spread of SARS-CoV-2, the German government released the “Corona-Warn-App”, a smartphone application that warns users if they have come into contact with other users tested posi- tive for SARS-CoV-2. Since using the "Corona-Warn-App" is health-relevant behavior, it is essential to understand who is (and who is not) using it and why. In N = 1,972 German adults, we found that non-users were on average older, female, healthier, in training, and had low general trust in others. Most frequently named reasons by non-users were privacy concerns, doubts about the effectiveness of the app, and lack of technical equipment.
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Government responses against COVID-19 has been met with salient protests across multiple Western democracies. Such protests have received significant media attention but we know little about the extent to which they reflect the views of the broader public. To fill this lacuna, this manuscript investigates how citizens across a number of Western democracies evaluate the interventions imposed by their government to contain the COVID-19 pandemic. Relying on large-scale, representative surveys from eight countries (Denmark, France, Germany, Hungary, Italy, United Kingdom, United States and Sweden), we investigate how pandemic-specific and broader political attitudes correlate with support for government lockdowns in the first wave of the pandemic (March 19 -- April 8), a period hallmarked by stringent policies in all of our countries. We find medium to high levels of government support in all eight countries. Furthermore, our results suggest that these levels of support are generated by a unique coalition of fearful, prosocial and knowledgable individuals. While such groups are often political opponents, the unprecedented nature of the COVID-19 pandemic aligns their interests.
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psyarxiv.com psyarxiv.com
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During a global health crisis, people are exposed to vast amounts of information from a variety of sources. Here, we assessed which information sources could increase COVID- 19 knowledge by endorsing accurate information and refuting inaccurate information. A nationally representative sample of 1060 Cloud Research participants first rated the accuracy of a set of statements about COVID-19 (belief pre-test). Then, they were randomly assigned to one of 10 between-subjects conditions for which we varied the source that provided belief-relevant information: a political leader (President Trump or Vice-President Biden), a health authority (Doctor Fauci or the CDC), an anecdote (of a Democrat or a Republican), a large group of prior participants (Democrats, Republicans, or No affiliation), or no source (Control Condition). Finally, they rated the accuracy of the initial set of statements again (belief post-test). We found that, compared to the Control Condition, participants increased in COVID-19 knowledge by changing their beliefs to align with health authorities and with all three large groups of prior participants, and were not influenced by political leaders or anecdotes. Information source did not interact with participants’ political affiliation, suggesting that Democrats and Republicans are similarly affected by COVID-19 information sources.
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psyarxiv.com psyarxiv.com
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The emergence of novel CoronaVirus Disease (COVID-19) has crossed borders at a lightening speed, infecting people all over the world within China and all over the globe. This virus has impacted in a way that has imposed mandatory lockdowns in many countries including India. However, since the lockdown has been imposed, attention is being focussed on the economic repercussions, migrants and livelihoods. Mental health issues such as anxiety, worry, fear of infection, sleep disturbance and in some cases suicide are side lined. This paper reviews the current scenario of COVID-19 in India in the context of mental health and related issues. Alongside, looks at ways to build awareness among the public on mental health during COVID-19.
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www.project-syndicate.org www.project-syndicate.org
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Business travel, which used to represent $1.5 trillion a year – about 1.7% of world GDP – has slowed to a trickle. But the economic impact will extend far beyond lost jobs at airlines and in the hospitality industry, because it will also lead to a substantial decline in the transfer of knowledge.
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www.acpjournals.org www.acpjournals.org
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On my second-to-last day in the hospital, I felt a sudden, unexplainable fatigue—nothing else. I finished work, asked the resident to page me with updates, and left early. The next morning, I awoke with a fever, sweats, headache, and mild cough. Not surprisingly, I tested positive for COVID-19. At the testing site, I became confused when someone asked for my address and insurance. Upon my return home, I isolated myself from my family in my bedroom. That was the last time I left my bedroom for 4 weeks.
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www.nature.com www.nature.com
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Genomics could reveal details about the source of the country’s first outbreak in more than 100 days, says epidemiologist Amanda Kvalsvig.
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This paper seeks to answer the simple question of what category of retail outlets generates the most physical interactions in the regular course of life. In this way, we aim to bring a marketing perspective to discussions about which businesses may be most risky from the standpoint of spreading contagious disease. We use detailed data from people's mobile devices prior to the implementation of social distancing measures in the United States. With this data, we examine a number of potential indicators of risk of contagion: The absolute number of visits and visitors, how many of the visits are generated by the same people, the median average distance traveled by the visitor to the retailer, and the number of customers from Canada and Mexico. We find that retailers with a single outlet tend to attract relatively few visitors, fewer one-off visitors, and have fewer international customers. For retailers that have multiple stores the patterns are non-linear. Retailers that have such a large number of stores that they are ubiquitous, tend to exhibit fewer visits and visitors and attract customers from a smaller distance. However, retailers that have a large enough footprint to be well known, but not large enough to be ubiquitous tend to attract a large number of visitors who make one-off visits, travel a long distance, and are disproportionately international.
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What are the characteristics of workers in jobs likely to be initially affected by broad social distancing and later by narrower policy tailored to jobs with low risk of disease transmission? We use O NET to construct a measure of the likelihood that jobs can be conducted from home (a variant of Dingel and Neiman, 2020) and a measure of low physical proximity to others at work. We validate the measures by showing how they relate to similar measures constructed using time use data from ATUS. Our main finding is that workers in low-work-from-home or high-physical- proximity jobs are more economically vulnerable across various measures constructed from the CPS and PSID: they are less educated, of lower income, have fewer liquid assets relative to income, and are more likely renters. We further substantiate the measures with behavior during the epidemic. First, we show that MSAs with less pre-virus employment in work-from-home jobs experienced smaller declines in the incidence of `staying-at-home', as measured using SafeGraph cell phone data. Second, we show that both occupations and types of workers predicted to be employed in low work-from-home jobs experienced greater declines in employment according to the March 2020 CPS. For example, non-college educated workers experienced a 4ppt larger decline in employment relative to those with a college degree.
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www.nber.org www.nber.org
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This paper studies how better access to public health insurance affects infant mortality during pandemics. Our analysis combines cross-state variation in mandated eligibility for Medicaid with two influenza pandemics — the 1957-58 "Asian Flu" pandemic and the 1968-69 "Hong Kong Flu" — that arrived shortly before and after the program's introduction. Exploiting heterogeneity in the underlying severity of these two shocks across counties, we find no relationship between Medicaid eligibility and pandemic infant mortality during the 1957-58 outbreak. After Medicaid implementation, we find that better access to insurance in high-eligibility states substantially reduced infant mortality during the 1968-69 pandemic. The reductions in pandemic infant mortality are too large to be attributable solely to new Medicaid recipients, suggesting that the expansion in health insurance coverage mitigated disease transmission among the broader population.
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www.nber.org www.nber.org
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We develop and calibrate a search-theoretic model of the labor market in order to forecast the evolution of the aggregate US labor market during and after the coronavirus pandemic. The model is designed to capture the heterogeneity of the transitions of individual workers across states of unemployment, employment and across different employers. The model is also designed to capture the trade-offs in the choice between temporary and permanent layoffs. Under reasonable parametrizations of the model, the lockdown instituted to prevent the spread of the novel coronavirus is shown to have long-lasting negative effects on unemployment. This is so because the lockdown disproportionately disrupts the employment of workers who need years to find stable jobs.
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www.nber.org www.nber.org
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A key driver in biopharmaceutical investment decisions is the probability of success of a drug development program. We estimate the probabilities of success (PoSs) of clinical trials for vaccines and other anti-infective therapeutics using 43,414 unique triplets of clinical trial, drug, and disease between January 1, 2000, and January 7, 2020, yielding 2,544 vaccine programs and 6,829 nonvaccine programs targeting infectious diseases. The overall estimated PoS for an industry-sponsored vaccine program is 39.6%, and 16.3% for an industry-sponsored anti-infective therapeutic. Among industry-sponsored vaccines programs, only 12 out of 27 disease categories have seen at least one approval, with the most successful being against monkeypox (100%), rotavirus (78.7%), and Japanese encephalitis (67.6%). The three infectious diseases with the highest PoSs for industry-sponsored nonvaccine therapeutics are smallpox (100%), cytomegalovirus (CMV) infection (31.8%), and onychomycosis (29.8%). Non-industry-sponsored vaccine and nonvaccine development programs have lower overall PoSs: 6.8% and 8.2%, respectively. Viruses involved in recent outbreaks—Middle East respiratory syndrome (MERS), severe acute respiratory syndrome (SARS), Ebola, and Zika—have had a combined total of only 45 nonvaccine development programs initiated over the past two decades, and no approved therapy to date. These estimates offer guidance both to biopharma investors as well as to policymakers seeking to identify areas most likely to be underserved by private sector engagement and in need of public sector support.
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We use micro data on earnings together with the details of each state’s UI system under the CARES Act to compute the entire distribution of current UI benefits. The median replacement rate is 134%. Two-thirds of UI eligible workers can receive benefits which exceed lost earnings and one-fifth can receive benefits at least double lost earnings. There is sizable variation in the effects of the CARES Act across occupations and states, with important distributional consequences. We show how alternative UI expansion policies would change the distribution of UI benefits and thus affect resulting liquidity provision, progressivity, and labor supply incentives.
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We evaluate the effects of COVID19 restrictions and fiscal policy in a model featuring economic slack. The restrictions can reduce current-period GDP by more than is directly associated with the restrictions themselves even if prices and wages are flexible, households can smooth consumption, and workers are mobile across sectors. The most effective fiscal policies depend on (a) the joint distribution of capital operating costs with respect to firm revenues, (b) the extent to which the price of capital adjusts, and (c) additional factors that determine whether the economy will enter a boom or a slump after the restrictions are lifted, such as the effect of the restrictions on inequality and on spending by high-income households.
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www.nber.org www.nber.org
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This paper assesses the age specificity of the infection fatality rate (IFR) for COVID-19. Our benchmark meta-regression synthesizes the age-specific IFRs from six recent large-scale seroprevalence studies conducted in Belgium, Geneva, Indiana, New York, Spain, and Sweden. The estimated IFR is close to zero for children and younger adults but rises exponentially with age, reaching about 0.3 percent for ages 50-59, 1.3 percent for ages 60-69, 4.6 percent for ages 70-79, and 25 percent for ages 80 and above. We compare those predictions to the age-specific IFRs implied by recent seroprevalence estimates for nine other U.S. locations, three smale-scale studies, and three countries (Iceland, New Zealand, and Republic of Korea) that have engaged in comprehensive tracking and tracing of COVID-19 infections. We also review seroprevalence studies of 32 other locations whose design was not well-suited for estimating age-specific IFRs. Our findings indicate that COVID-19 is not just dangerous for the elderly and infirm but also for healthy middle-aged adults, for whom the fatality rate is more than 50 times greater than the risk of dying in an automobile accident. Consequently, the overall IFR for a given location is intrinsically linked to the age-specific pattern of infections. In a scenario where the U.S. infection rate reaches 20 percent, our analysis indicates that protecting vulnerable age groups could prevent more than 200,000 deaths.
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www.nber.org www.nber.org
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As of June 2020, the coronavirus pandemic has led to more than 2.3 million confirmed infections and 121 thousand fatalities in the United States, with starkly different incidence by race and ethnicity. Our study examines racial and ethnic disparities in confirmed COVID-19 cases across six diverse cities – Atlanta, Baltimore, Chicago, New York City, San Diego, and St. Louis – at the ZIP code level (covering 436 “neighborhoods” with a population of 17.7 million). Our analysis links these outcomes to six separate data sources to control for demographics; housing; socioeconomic status; occupation; transportation modes; health care access; long-run opportunity, as measured by income mobility and incarceration rates; human mobility; and underlying population health. We find that the proportions of black and Hispanic residents in a ZIP code are both positively and statistically significantly associated with COVID-19 cases per capita. The magnitudes are sizeable for both black and Hispanic, but even larger for Hispanic. Although some of these disparities can be explained by differences in long-run opportunity, human mobility, and demographics, most of the disparities remain unexplained even after including an extensive list of covariates related to possible mechanisms. For two cities – Chicago and New York – we also examine COVID-19 fatalities, finding that differences in confirmed COVID-19 cases explain the majority of the observed disparities in fatalities. In other words, the higher death toll of COVID-19 in predominantly black and Hispanic communities mostly reflects higher case rates, rather than higher fatality rates for confirmed cases.
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www.nber.org www.nber.org
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We simulate a spatial behavioral model of the diffusion of an infection to understand the role of geographic characteristics: the number and distribution of outbreaks, population size, density, and agents’ movements. We show that several invariance properties of the SIR model with respect to these variables do not hold when agents interact with neighbors in a (two dimensional) geographical space. Indeed, the local interactions arising in the spatial model give rise to matching frictions and local herd immunity effects which play a fundamental role in the dynamics of the infection. We also show that geographical factors affect how behavioral responses affect the epidemics. We derive relevant implications for the estimation of epidemiological models with panel data from several geographical units.
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We develop a quantitative framework for exploring how individuals trade off the utility benefit of social activity against the internal and external health risks that come with social interactions during a pandemic. We calibrate the model to external targets and then compare its predictions with daily data on social activity, fatalities, and the estimated effective reproduction number R(t) from the COVID-19 pandemic in March-June 2020. While the laissez- faire equilibrium is consistent with much of the decline in social activity that we observed in US data, optimal policy further imposes immediate and highly persistent social distancing. Notably, neither equilibrium nor optimal social distancing is extremely restrictive, in the sense that the effective reproduction number never falls far below 1. The expected cost of COVID-19 in the US is substantial, $12,700 in the laissez-faire equilibrium and $8,100 per person under an optimal policy. Optimal policy generates this large welfare gain by shifting the composition of costs from fatalities to persistent social distancing.
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www.nber.org www.nber.org
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This paper describes a weekly economic index (WEI) developed to track the rapid economic developments associated with the response to the novel Coronavirus in the United States. The WEI shows a strong and sudden decline in economic activity starting in the week ending March 21, 2020. In the most recent week ending March 28, the WEI indicates economic activity has fallen further to -6.19% scaled to 4 quarter growth in GDP.
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www.nber.org www.nber.org
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This paper measures the role of the diffusion of high-speed Internet on an individual's ability to self-isolate during a global pandemic. We use data that tracks 20 million mobile devices and their movements across physical locations, and whether the mobile devices leave their homes that day. We show that while income is correlated with differences in the ability to stay at home, the unequal diffusion of high-speed Internet in homes across regions drives much of this observed income effect. We examine compliance with state-level directives to avoid leaving your home. Devices in regions with either high-income or high-speed Internet are less likely to leave their homes after such a directive. However, the combination of having both high income and high-speed Internet appears to be the biggest driver of propensity to stay at home. Our results suggest that the digital divide---or the fact that income and home Internet access are correlated---appears to explain much inequality we observe in people's ability to self-isolate.
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The outbreak of covid19 has significantly disrupted the economy. This note attempts to quantify the macroeconomic impact of costly and deadly disasters in recent US history, and to translate these estimates into an analysis of the likely impact of covid19. A costly disaster series is constructed over the sample 1980:1-2019:12 and the dynamic impact of a costly disaster shock on economic activity and on uncertainty is studied using a VAR. Unlike past natural disasters, covid19 is a multi-month shock that is not local in nature, disrupts labor market activities rather than destroys capital, and harms the social and physical well being of individuals. Calibrating different shock profiles to reflect these features, we find that the effects of the event last from two months to over a year, depending on the sector of the economy. Even a conservative calibration of a 3-month, 60 standard deviation shock is forecast to lead to a cumulative loss in industrial production of 12.75% and in service sector employment of nearly 17% or 24 million jobs over a period of ten months, with increases in macro uncertainty that last five months.
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www.nber.org www.nber.org
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We analyze the repercussions of the 1918 Influenza Pandemic on demographic measures, human capital formation, and productivity markers in the state of Sao Paulo, Brazil's financial center and the most populous city in South America today. Leveraging temporal and spatial variation in district-level estimates of influenza-related deaths for the period 1917-1920 combined with a unique database on socio-economic, health and productivity outcomes constructed from historical and contemporary documents for all districts in Sao Paulo, we find that the 1918 Influenza pandemic had significant negative impacts on infant mortality and sex ratios at birth in 1920 (the short-run). We find robust evidence of persistent effects on health, educational attainment and productivity more than twenty years later. Our study highlights the importance of documenting the legacy of historical shocks in understanding the development trajectories of countries over time.
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www.reddit.com www.reddit.com
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Before answering, I should say that I am responding from a particular perspective, given that I was part of an open letter to the UK government on this issue in March of this year. The following piece outlines in a bit more detail our thinking in writing that letter:https://behavioralscientist.org/why-a-group-of-behavioural-scientists-penned-an-open-letter-to-the-uk-government-questioning-its-coronavirus-response-covid-19-social-distancing/
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There seems to have been a lot of criticism for the use of the term "behavioural fatigue", and its potential impact on policy, by the UK government in the early part of the pandemic
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register.gotowebinar.com register.gotowebinar.com
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With the onset of COVID-19, many research labs have had to shut down and temporarily suspend their research efforts. Months later, labs are slowly beginning to reopen, but have had to make adaptations to their research methods in response to the pandemic. This webinar will present ways to get your research project back on track. Our panelists will describe how they were able to successfully recover from delays and lab closures by having a solid lab reopening plan; changing research protocols; taking into account the stressors that a pandemic has had on research participants; and finding creative ways to get back to data collection.
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onlinexperiences.com onlinexperiences.com
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The Covid-19 pandemic is reshaping almost every aspect of our society, including our health care systems. In this global emergency, in which the coronavirus continues its inexorable spread with a disproportional impact on communities of color, the urgent search for effective therapeutics and an effective vaccine has led to unprecedented collaborations between health care and drug companies, academic researchers, nonprofits and governments. Even so, some stresses to this collaborative approach are evident, mostly from governments eager to secure first for their domestic populations treatments and potential vaccines.
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www.newscientist.com www.newscientist.com
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During the covid-19 pandemic we've been bombarded with stats – making it more important than ever to understand what the numbers can and can't tell us
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dailyfreepress.com dailyfreepress.com
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Coronavirus Timeline/Overview By The Numbers Latest Coverage News Campus City Obituaries Sports Ice Hockey Basketball Soccer Field Hockey Lacrosse Softball Cross Country Track and Field Club Sports Columnists Features Community Business Science Arts Opinion Columns Editorial Comics Letters to Editor Op-Ed Blogs The Now Boston Hockey Blog Full Court Press Podcasts East to West Terrier Hockey Talk Clout Chasing Photo Video Campus, News Boston University instates policy to issue degrees to students after death, starting this Fall August 12, 2020 12:48 pm by Angela Yang Students who die while attending Boston University will be able to undergo an official process to obtain a posthumous degree, starting this Fall. The University released the policy June 12, but did not make an announcement or notify the BU community otherwise.
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www.nature.com www.nature.com
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The Collaborative Filtering (CF) algorithm based on trust has been the main method used to solve the cold start problem in Recommendation Systems (RSs) for the past few years. Nevertheless, the current trust-based CF algorithm ignores the implicit influence contained in the ratings and trust data. In this paper, we propose a new rating prediction model named the Rating-Trust-based Recommendation Model (RTRM) to explore the influence of internal factors among the users. The proposed user internal factors include the user reliability and popularity. The internal factors derived from the explicit behavior data (ratings and trust), which can help us understand the user better and model the user more accurately. In addition, we incorporate the proposed internal factors into the Singular Value Decomposition Plus Plus (SVD + +) model to perform the rating prediction task. Experimental studies on two common datasets show that utilizing ratings and trust data simultaneously to mine the factors that influence the relationships among different users can improve the accuracy of rating prediction and effectively relieve the cold start problem.
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arxiv.org arxiv.org
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Online discussion threads are important means for individual decision-making and for aggregating collective judgments, e.g. the `wisdom of crowds'. Empirical investigations of the wisdom of crowds are currently ambivalent about the role played by social information. While some findings suggest that social information undermines crowd accuracy due to correlated judgment errors, others show that accuracy improves. We investigate experimentally the accuracy of threads in which participants make magnitude estimates of varying difficulty while seeing a varying number of previous estimates. We demonstrate that, for difficult tasks, seeing preceding estimates aids the wisdom of crowds. If, however, participants only see extreme estimates, wisdom quickly turns into folly. Using a Gaussian Mixture Model, we assign a persuadability score to each participant and show that persuadability increases with task difficulty and with the amount of social information provided. In filtered threads, we see an increasing gap between highly persuadable participants and skeptics.
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www.nature.com www.nature.com
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The synchronization of human networks is essential for our civilization and understanding its dynamics is important to many aspects of our lives. Human ensembles were investigated, but in noisy environments and with limited control over the network parameters which govern the network dynamics. Specifically, research has focused predominantly on all-to-all coupling, whereas current social networks and human interactions are often based on complex coupling configurations. Here, we study the synchronization between violin players in complex networks with full and accurate control over the network connectivity, coupling strength, and delay. We show that the players can tune their playing period and delete connections by ignoring frustrating signals, to find a stable solution. These additional degrees of freedom enable new strategies and yield better solutions than are possible within current models such as the Kuramoto model. Our results may influence numerous fields, including traffic management, epidemic control, and stock market dynamics.
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www.theguardian.com www.theguardian.com
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Across Britain, parks have offered millions of people respite from the coronavirus crisis – a breathing space amid infection anxieties, crowded flats, home-schooling and job insecurities. With other venues closed, people turned to the nation’s 27,000 urban green spaces, from manicured landscapes to patchy neighbourhood parks and playing fields
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psyarxiv.com psyarxiv.com
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The effect of social media consumption on perceptions of the seriousness of the Covid-19 pandemic, attitudes to public health requirements, and intentions towards a future Covid-19 vaccine are of live public health interest. There are also public health and security concerns that the pandemic has been accompanied and arguably further amplified by an ‘infodemic’ spreading misinformation. Tests of the effect of social media consumption on future Covid-19 vaccine intentions using population samples have been relatively few to date. This study contributes to the evidence base by examining social media consumption and vaccine intentions using British and US population samples. Methods: Data were gathered on 1,663 GB adults and 1,198 US adults from an online panel on attitudes towards a future vaccine alongside self-reported social and legacy broadcast and print media consumption. Ordered and binomial logit models were used to assess reported intentions regarding a future Covid-19 vaccine, testing the effects of media consumption type. Respondents were categorised in terms of their media consumption using a fourfold typology, as less frequent social, less frequent legacy media consumers (low-low); high social, low legacy media consumers (high-low); low social, high legacy (low-high); and high social, high legacy (high-high). Results: In the British sample, regression results indicate that those who receive Covid-19 updates more frequently via legacy media (low-high), and those being updated more than daily via both online and legacy media consumers, tend to provide significantly less Covid-19 vaccine-hesitant responses than low-low consumers. There is no significant difference between high social, low legacy media consumers and low-low consumers. In the US sample, membership of the low-high group is associated with lower Covid-19 vaccine hesitancy compared with low-low consumers. However, respondents consuming both social and legacy media several times daily exhibit similar vaccine intentions on average to those consuming social media daily and legacy media less often, providing a contrast with the UK sample. We also identify differences in Covid-19 vaccine intentions relating to demographics and political values. Conclusions: Differences in vaccine attentions are associated with the extent and balance of consumption of news relating to Covid-19 and its source. Political values and ethnic identity also appear to structure attitudes to a putative future Covid-19 vaccine.
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www.bbc.com www.bbc.com
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Lithuania’s capital, Vilnius, has opened up public outdoor spaces to cafés and bars to boost the local economy, but the move has created conflicts as well as benefits.
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psyarxiv.com psyarxiv.com
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As a response to the replication crisis, reforms call for the implementation of open science standards. In this regard, open science badges are a promising method to signal a study’s adherence to open science practices (OSP). In an experimental study, we investigated whether badges on journal article title pages affect non-scientists’ trust in scientists. Furthermore, we analyzed the moderating role of epistemic beliefs in this regard. We randomly assigned 270 non-scientists to two of three conditions: Badges awarded (visible compliance to OSP), badges not awarded (visible non-compliance to OSP) and no badges (compliance not visible, control condition). Results indicate that badges influence trust in scientists as well as the epistemic beliefs of participants. However, epistemic beliefs did not moderate the effect of badges on trust. In sum, our paper provides support to the notion that badges are an effective means to promote epistemic beliefs and trust in scientists.
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uk.reuters.com uk.reuters.com
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The French government on Friday declared Paris and Marseille and its surrounding area high-risk zones for the coronavirus, granting authorities there powers to impose localised curbs to contain the spread of the disease. The declaration, made in a government decree, follows a sharp increase in COVID-19 infections in France over the past two weeks.
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www.theguardian.com www.theguardian.com
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The government has quietly removed 1.3m coronavirus tests from its data because of double counting, raising fresh questions about the accuracy of the testing figures. In the government’s daily coronavirus update on Wednesday, it announced it had lowered the figure for “tests made available” by about 10% and discontinued the metric.
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www.bbc.co.uk www.bbc.co.uk
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The number of people in hospital with Covid-19 fell in coronavirus hotspots in June and July, according to data released by NHS England.
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www.washingtonpost.com www.washingtonpost.com
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England's coronavirus death toll is being revised downward by more than 5,000 fatalities after experts belatedly concluded they were probably overcounting deaths.This recently discovered “statistical anomaly” means that on Wednesday Britain’s official tally of deaths due to covid-19 was trimmed from 46,706 to 41,329 — a reduction of more than 10 percent.Support our journalism. Subscribe today.arrow-rightA review revealed that a government agency had been counting people as having died of the virus regardless of when they tested positive — meaning even an asymptomatic carrier who was infected in March but was killed in a traffic accident in July would be considered a covid-19 death.
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psyarxiv.com psyarxiv.com
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Despite recent close attention to issues related to the reliability of psychological research (e.g., the replication crisis), issues of the validity of this research have not been considered to the same extent. This paper highlights an issue that calls into question the validity of the common research practice of studying samples of individuals, and using sample-based statistics to infer generalisations that are applied not only to the parent population, but to individuals. The lack of ergodicity in human data means that such generalizations are not justified. This problem is illustrated with respect to two common scenarios in psychological research that raise questions for the sorts of theories that are typically proposed to explain human behaviour and cognition. The paper presents a method of data analysis that requires closer attention to the range of behaviours exhibited by individuals in our research to determine the pervasiveness of effects observed in sample data. Such an approach to data analysis will produce results that are more in tune with the types of generalisations typical in reports of psychological research than mainstream analysis methods.
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psyarxiv.com psyarxiv.com
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Although conspiracy theories are endorsed by about half the population and occasionally turn out to be true, they are more typically false beliefs that, by definition, have a paranoid theme. Consequently, psychological research to date has focused on determining whether there are traits that account for belief in conspiracy theories (BCT) within a deficit model. Alternatively, a two-component, socio-epistemic model of BCT is proposed that seeks to account for the ubiquity of conspiracy theories, their variance along a continuum, and the inconsistency of research findings likening them to psychopathology. Within this model, epistemic mistrust is the core component underlying conspiracist ideation that manifests as the rejection of authoritative information, focuses the specificity of conspiracy theory beliefs, and can sometimes be understood as a sociocultural response to breaches of trust, inequities of power, and existing racial prejudices. Once voices of authority are negated due to mistrust, the resulting epistemic vacuum can send individuals “down the rabbit hole” looking for answers where they are vulnerable to the biased processing of information and misinformation within an increasingly “post-truth” world. The two-component, socio-epistemic model of BCT argues for mitigation strategies that address both mistrust and misinformation processing, with interventions for individuals, institutions of authority, and society as a whole.
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www.cebm.net www.cebm.net
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Public Health England has changed its definition of deaths. The new definition is now death in a person with a laboratory-confirmed positive COVID-19 test and died within (equal to or less than) 28 days of the first positive specimen date will now be reported
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www.washingtonpost.com www.washingtonpost.com
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Hailed as “heroes” at the onset of the pandemic, supermarket employees now say they are overworked, overwhelmed and feeling expendable again.
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www.theguardian.com www.theguardian.com
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The coronavirus pandemic has had a catastrophic effect on the nutritional health of the UK’s poorest citizens with as many as one in 10 forced to use food banks, and vast numbers skipping meals and going hungry, according to the government’s food safety watchdog. Food insecurity has shot up even further since lockdown as people’s income reduced, the Food Standards Agency (FSA) said, heightening the risk both of malnutrition and obesity as struggling families adopted highly restrictive “basic sustenance” diets that largely cut out healthy foods.
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psyarxiv.com psyarxiv.com
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Background: The novel coronavirus disease 2019 (COVID-19) has negatively impacted mortality, economic conditions, and mental health. A large scale study on psychological reactions to the pandemic to inform ongoing population-level symptom tracking and response to treatment is currently lacking. Methods: Average intake scores for standard depression and anxiety symptom scales were tracked from January 1, 2017 to June 9, 2020 for patients seeking treatment from a digital mental health service to gauge the relationship between COVID-19 and self-reported symptoms. We applied natural language processing (NLP) to unstructured therapy transcript data from patients seeking treatment during the height of the pandemic in the United States between March 1, 2020 and June 9, 2020 to identify words associated with COVID-19 mentions. This analysis was used to identify symptoms that were present beyond those assessed by standard depression and anxiety measures. Results: Depression and anxiety symptoms reported by 169,889 patients between January 1, 2017 and June 9, 2020 were identified. There was no detectable change in intake depression symptom scores. Intake anxiety symptom scores increased 1.42 scale points [95% CI: 1.18, 1.65] between March 15, 2020 and April 1, 2020, when scores peaked. In the transcript data of these 169,889 patients, plus an expanded sample of 49,267 patients without symptom reports, term frequency-inverse document frequency (tf-idf) identified 2,377 positively correlated and 661 negatively correlated terms that were significantly (FDR<.01) associated with mentions of the virus. These terms were classifiable into 24 symptoms beyond those included in the diagnostic criteria for anxiety or depression. Conclusions: The COVID-19 pandemic may have increased intake anxiety symptoms for individuals seeking digital mental health treatment. NLP analyses suggest that standard symptom scales for depression and anxiety alone are inadequate to fully assess and track psychological reactions to the pandemic. Symptoms of grief, trauma, obsession-compulsion, agoraphobia, hypochondriasis, panic, and non- suicidal self-injury should be monitored as part of a new COVID-19 Syndrome category.
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psyarxiv.com psyarxiv.com
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The COVID-19 pandemic poses significant threat to humans’ physical and mental wellbeing. In response, there has been an urgent “call to action” for psychological interventions that enhance positive emotion and psychological resilience. Extending upon past research documenting the wellbeing benefits of generous action, we conducted two online pre-registered experiments (N =1,623) during the pandemic in which participants were randomly assigned to engage in other- or self-beneficial action. Specifically, participants made charitable donations or gained money for themselves (Experiment 1); purchased COVID-19-related or COVID-19-unrelated items for someone else or for themselves (Experiment 2). Results showed that prosocial behavior led to greater positive affect, meaningfulness, empathy and social connectedness. Affect benefits were detectable whether prosocial spending was COVID-19-related or not. These findings provide support for one strategy to bolster wellbeing during the pandemic – generous action – which may also promote cooperation and social cohesiveness needed to contain and overcome the virus.
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psyarxiv.com psyarxiv.com
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Exposure to right-wing media has been shown to relate to lower perceived threat from COVID-19, lower compliance with prophylactic measures against it, and higher incidence of infection and death. What features of right-wing media messages account for these effects? In a preregistered cross-sectional study (N = 554) we test a model that differentiates perceived consequences of two CDC recommendations—washing hands and staying home—for basic human values. People who consumed more right-wing media perceived these behaviors as less beneficial for their personal security, for the well-being of close ones, and the well-being of society at large. Perceived consequences of following the CDC recommendations mediated the relationship between media consumption and compliance with recommendations. Implications for public health messaging are discussed.
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psyarxiv.com psyarxiv.com
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In response to the coronavirus disease 2019 (COVID-19) schools around the world have been closed to protect against the spread of coronavirus. In several countries, homeschooling has been introduced to replace classroom schooling. With a focus on individual differences, the present study examined 138 schoolers (age range = 6 to 21 years) regarding their self-control and boredom proneness. The results showed that both traits were important in predicting adherence to homeschooling. Schoolers with higher levels of self-control perceived homeschooling as less difficult, which in turn increased homeschooling adherence. In contrast, schoolers with higher levels of boredom proneness perceived homeschooling as more difficult, which in turn reduced homeschooling adherence. These results partially hold when it comes to studying in the classroom. However, boredom threatened adherence only in the homeschooling context. Our results indicate that boredom proneness is a critical construct to consider when educational systems switch to homeschooling during a pandemic.
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www.nytimes.com www.nytimes.com
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Dr. Bonnie Henry kept the disease in check in British Columbia without harsh enforcement methods. Now, she is leading the way out of lockdown.
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www.government.se www.government.se
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Swedes are largely following the government agencies’ advice and recommendations. This has been shown through surveys and data concerning movement patterns. Now travel within Sweden is permitted again – but if the guidelines are not followed, the Government is prepared to take measures.
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behavioralscientist.org behavioralscientist.org
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On Friday, a group of behavioural scientists penned an open letter to the U.K. government questioning the decision to not enact strict social distancing policies. Social distancing measures, like closing restaurants and pubs, cancelling school and events, and working from home are being enforced across Europe. The U.K. government, however, has taken a decidedly different approach. At the time of publishing, around 1,400 cases of the virus had been detected in the U.K., up 1,000 from the week before. The open letter raises questions about the behavioural science evidence that may have been used to justify this decision—though a lack of transparency from the government has made it hard to discern what the official policy is. The letter has been signed by nearly 600 behavioural scientists from around the United Kingdom (at the time of publishing). In this op-ed, the authors of the letter explain why they are calling on the government to explain the scientific rationale behind their policy decisions thus far.
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We're now more than seven months into the coronavirus pandemic that has upended the lives of most of Earth's inhabitants. And while it is true that the scientific community has learned many things about the SARS-CoV-2 virus and the disease it causes, Covid-19, there are also many gaps in our understanding.
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www.weforum.org www.weforum.org
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COVID-19 has affected the livelihoods of an estimated 1.3 billion workers who represent nearly half of the world’s workforce, amplifying economic and social inequalities. In this session titled Redesigning Social Contracts in Crisis, the latest in the World Economic Forum’s Great Reset series, speakers from a range of locations and sectors respond to calls for stronger, more sustainable and more inclusive social contract.
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www.exeter.ac.uk www.exeter.ac.uk
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The price the UK government was prepared to pay to save lives during the COVID-19 pandemic was far lower than in many other developed nations, a study has revealed.
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www.weforum.org www.weforum.org
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To cover, or not to cover? That is the question. Not just a question, in fact, but a divisive issue that has led to protests in some parts of the world – most notably in the United States – and explosions of fake news on the internet.
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www.rawstory.com www.rawstory.com
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Idaho lawmakers are moving to strip the authority of public health districts to close schools in emergencies or require masks for safety reasons.
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www.youtube.com www.youtube.com
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As social media become the major platforms for discussions of important topics like national politics, public health, and environmental policy, there is a growing concern about the manipulation of these information ecosystems and their users. Malicious techniques include astroturf, amplification of misinformation, and trolling. Such abuses can be carried out by humans as well as social bots --- inauthentic accounts controlled in part by software. The resulting biased reality can fool even professional researchers. While researchers are increasingly interested in detecting and studying these malicious activities, there are serious challenges. First, the collection and analysis of data from social media require significant storage and computing resources. Second, knowledge, experience, and advanced computational skills are necessary to find patterns and signals of suspicious behaviors in large datasets. In this tutorial, we will present free tools from the Observatory of Social Media (OSoMe, pronounced “awe·some”) at Indiana University. We will focus on three tools that aim to help researchers and the general public combat online manipulation: Botometer, which helps detect social bots on Twitter; Hoaxy, which can track and visualize the diffusion of misinformation; and BotSlayer, which helps track and detect potential manipulation of information spreading on Twitter in real time. These tools are equipped with state-of-the-art algorithms and carefully designed user interfaces. They also provide public APIs to allow querying in bulk. They have served as the foundation for hundreds of research papers, and have helped thousands of users combat manipulation on social media.
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Most empirical studies of complex networks do not return direct, error-free measurements of network structure. Instead, they typically rely on indirect measurements that are often error-prone and unreliable. A fundamental problem in empirical network science is how to make the best possible estimates of network structure given such unreliable data. In this paper we describe a fully Bayesian method for reconstructing networks from observational data in any format, even when the data contain substantial measurement error and when the nature and magnitude of that error is unknown. The method is introduced through pedagogical case studies using real-world example networks, and specifically tailored to allow straightforward, computationally efficient implementation with a minimum of technical input. Computer code implementing the method is publicly available.
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goodjudgment.io goodjudgment.io
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Forecasts from Good Judgment's Professional Superforecasters. Probability values are updated daily at 7:00AM US Eastern time.
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services.aap.org services.aap.org
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State-level reports are the best publicly available data on child COVID-19 cases in the United States. The American Academy of Pediatrics and the Children’s Hospital Association are collaborating to collect and share all publicly available data from states on child COVID-19 cases (definition of “child” case is based on varying age ranges reported across states; see report Appendix for details and links to all data sources). On August 6, the age distribution of reported COVID-19 cases was provided on the health department websites of 49 states, New York City, the District of Columbia, Puerto Rico, and Guam. While children represented only 9.1% of all cases in states reporting cases by age, over 380,000 children have tested positive for COVID-19 since the onset of the pandemic. A smaller subset of states reported on hospitalizations and mortality by age, but the available data indicated that COVID-19-associated hospitalization and death is uncommon in children.
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podcasts.apple.com podcasts.apple.com
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Julia Marcus, an epidemiologist and assistant professor at Harvard Medical School, discusses how to assess risk when engaging in different social activities.
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www.bbc.co.uk www.bbc.co.uk
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New coronavirus infections have nearly doubled in France in recent weeks as Prime Minister Jean Castex warned that the country had been going "the wrong way" for two weeks.
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uk.reuters.com uk.reuters.com
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BERLIN (Reuters) - Germany recorded the biggest daily increase in new coronavirus cases in more than three months, data showed on Wednesday, with the health minister warning of outbreaks in nearly all parts of the country due to holiday returnees and party-goers.
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news.sky.com news.sky.com
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A total of 312,789 cases have been confirmed in the UK since the beginning of the pandemic.
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www.theguardian.com www.theguardian.com
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Years of spending cuts and deepening inequality meant the worst off limped into this pandemic in a parlous state
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www.economist.com www.economist.com
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The pandemic has put paid to the thrill of recounting illicit activities. And we’re all the poorer for it
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www.theguardian.com www.theguardian.com
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A campaign has highlighted plight of unmarried couples from different countries parted for months
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Safety will not be compromised for a Covid-19 vaccine, the US Food and Drug Administration commissioner said Monday.Dr. Stephen Hahn made the declaration in a video briefing with the American Medical Association. More than 5 million Americans have been infected with coronavirus, and more than 163,000 have died, according to Johns Hopkins data.
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www.thelancet.com www.thelancet.com
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The COVID-19 pandemic response is affecting maternal and neonatal health services all over the world. We aimed to assess the number of institutional births, their outcomes (institutional stillbirth and neonatal mortality rate), and quality of intrapartum care before and during the national COVID-19 lockdown in Nepal.
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advances.sciencemag.org advances.sciencemag.org
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Mandates for mask use in public during the recent COVID-19 pandemic, worsened by global shortage of commercial supplies, have led to widespread use of homemade masks and mask alternatives. It is assumed that wearing such masks reduces the likelihood for an infected person to spread the disease, but many of these mask designs have not been tested in practice. We have demonstrated a simple optical measurement method to evaluate the efficacy of masks to reduce the transmission of respiratory droplets during regular speech. In proof-of-principle studies, we compared a variety of commonly available mask types and observed that some mask types approach the performance of standard surgical masks, while some mask alternatives, such as neck fleece or bandanas, offer very little protection. Our measurement setup is inexpensive and can be built and operated by non-experts, allowing for rapid evaluation of mask performance during speech, sneezing, or coughing.
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As US leaders work to control the spread of coronavirus, researchers across the globe are working to answer the mysteries that remain around infections. One of those mysteries: why the experience can be so different from person to person. One expert says the answer may involve looking at previous vaccines individuals have had.
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www.theatlantic.com www.theatlantic.com
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Which is too bad because we really need to understand how the immune system reacts to the coronavirus.
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PROVIDENCE, R.I. (AP) — Vilified, threatened with violence and in some cases suffering from burnout, dozens of state and local public health leaders around the U.S. have resigned or have been fired amid the coronavirus outbreak, a testament to how politically combustible masks, lockdowns and infection data have become.
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www.forbes.com www.forbes.com
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Nearly half of Black small businesses had been wiped out by the end of April as the pandemic ravaged minority communities disproportionately, according to a report from the New York Fed.
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www.nature.com www.nature.com
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Pandemic policy must include defining and measuring what we mean by mild infection.
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jamanetwork.com jamanetwork.com
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Importance Interpreting randomized clinical trials (RCTs) and their clinical relevance is challenging when P values are either marginally above or below the P = .05 threshold.Objective To use the concept of reverse fragility index (RFI) to provide a measure of confidence in the neutrality of RCT results when assessed from the clinical perspective.Design, Setting, and Participants In this cross-sectional study, a MEDLINE search was conducted for RCTs published from January 1, 2013, to December 31, 2018, in JAMA, the New England Journal of Medicine (NEJM), and The Lancet. Eligible studies were phase 3 and 4 trials with 1:1 randomization and statistically nonsignificant binary primary end points. Data analysis was performed from August 1, 2019, to August 31, 2019.Exposures Single vs multicenter enrollment, total number of events, private vs government funding, placebo vs active control, and time to event vs frequency data.Main Outcomes and Measures The primary outcome was the median RFI with interquartile range (IQR) at the P = .05 threshold. Secondary outcomes were the number of RCTs in which the number of participants lost to follow-up was greater than the RFI; the median RFI with IQR at different P value thresholds; the median reverse fragility quotient with IQR; and the correlation between sample sizes, number of events, and P values of the RCT and RFI.Results Of the 167 RCTs included, 76 (46%) were published in the NEJM, 50 (30%) in JAMA, and 41 (24%) in The Lancet. The median (IQR) sample size was 970 (470-3427) participants, and the median (IQR) number of events was 251 (105-570). The median (IQR) RFI at the P = .05 threshold was 8 (5-13). Fifty-seven RCTs (34%) had an RFI of 5 or lower, and in 68 RCTs (41%) the number of participants lost to follow-up was greater than the RFI. Trials with P values ranging from P = .06 to P = .10 had a median (IQR) RFI of 3 (2-4). When compared, median (IQR) RFIs were not statistically significant for single-center vs multicenter enrollment (5 [4-13] vs 8 [5-13]; P = .41), private vs government-funded studies (9 [5-13] vs 8 [5-13]; P = .34), and time-to-event primary end points vs frequency data (9 [5-14] vs 7 [4-13]; P = .43). The median (IQR) RFI at the P = .01 threshold was 12 (7-19) and at the P = .005 threshold was 14 (9-21).Conclusions and Relevance This cross-sectional study found that a relatively small number of events (median of 8) had to change to move the primary end point of an RCT from nonsignificant to statistically significant. These findings emphasize the nuance required when interpreting trial results that did not meet prespecified significance thresholds.
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psyarxiv.com psyarxiv.com
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Preventing the spread of COVID-19 requires persuading the vast majority of the public to significantly change their behavior in numerous, costly ways. However, it is unclear which persuasive strategies are most effective at convincing people who are not fully compliant to take recommended actions, such as wearing a mask and staying home more often. In five studies (N = 5,351) conducted from March - July 2020, we evaluated 56 short messages aimed at convincing people to comply with public health guidelines. In two within-subjects studies, participants rated the persuasiveness of many short messages drawn from both past research on persuasion and original crowdsourcing. In three pre-registered, between-subjects experiments, we tested whether the four top-rated messages from the previous studies led people who were not fully compliant to increase their intentions to comply. We do not find consistent effects of any message, though a message emphasizing civic responsibility to reciprocate healthcare workers’ sacrifices performed best in three of five studies. Overall, these findings suggest that short messages are largely ineffective in increasing compliance with public health guidelines during advanced stages of the pandemic.
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The home advantage (HA) is a robust phenomenon in soccer whereby the home team wins more games and scores more goals than the away team. One explanation is that the home crowd spurs on home team performance and causes the referee to unconsciously favour the home team. The Covid-19 pandemic provided a unique opportunity to assess this explanation for HA, as European soccer leagues played part of the 2019/2020 season with crowds present and concluded with crowds absent. Using multi-level modelling we compared team performance and referee decisions pre-Covid (crowd present) and post-Covid (crowd absent) across 9,528 games from 15 leagues in 11 countries. HA (goals scored and points gained) was significantly reduced post pandemic, which reflected the inferior performance of the home team. In addition, referees awarded significantly fewer sanctions against the away teams, and home teams created significantly fewer attacking opportunities when they played without fans.
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www.cityam.com www.cityam.com
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Despite a tentative easing of the national lockdown, the lingering economic and social consequences of this policy are frighteningly obvious to anyone venturing into central London.
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www.nytimes.com www.nytimes.com
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Even before the pandemic, the whole fashion industry had started to unravel. What happens now that no one has a reason to dress up?
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www.nytimes.com www.nytimes.com
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Because money appears to be one of the best protections against the coronavirus, why not party like it’s 2019?
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www.thestar.com www.thestar.com
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after nearly a decade of doing keg stands in university lectures, funnelling beers next to police and provoking hockey dads, they’ve become two of the most recognizable personalities for young people in North America: Jesse Sebastiani and Kyle Forgeard, a pair of heavy-drinking, hard-talking Ontarians, better known as “Nelk.”Boasting nearly 5.5 million subscribers on YouTube alone, their provocative prank videos — which have led to arrests — have garnered more than 700 million video views. On Instagram, flanked by a crew of abrasive, hypermasculine personalities, Nelk broadcasts their brand of pranking and partying to more than 3.4 million followers (including Drake and Justin Bieber).But the crew’s actions during the COVID-19 pandemic, which include organizing packed “brotests” to push California to open its gyms, lavish partying and constant travel within the U.S., are being criticized by fans who want them to set a better example.
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www.nber.org www.nber.org
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We test for and measure the effects of cable news in the US on regional differences in compliance with recommendations by health experts to practice social distancing during the early stages of the COVID-19 pandemic. We use a quasi-experimental design to estimate the causal effect of Fox News viewership on stay-at-home behavior by using only the incremental local viewership due to the quasi-random assignment of channel positions in a local cable line-up. We find that a 10% increase in Fox News cable viewership (approximately 0:13 higher viewer rating points) leads to a 1.3 percentage point reduction in the propensity to stay at home. We find a persuasion rate of Fox News on non-compliance with stay-at-home behavior during the crisis of about 5:7% - 28:4% across our various social distancing metrics.
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We use a repeated large-scale survey of households in the Nielsen Homescan panel to characterize how labor markets are being affected by the covid-19 pandemic. We document several facts. First, job loss has been significantly larger than implied by new unemployment claims: we estimate 20 million lost jobs by April 6th, far more than jobs lost over the entire Great Recession. Second, many of those losing jobs are not actively looking to find new ones. As a result, we estimate the rise in the unemployment rate over the corresponding period to be surprisingly small, only about 2 percentage points. Third, participation in the labor force has declined by 7 percentage points, an unparalleled fall that dwarfs the three percentage point cumulative decline that occurred from 2008 to 2016.
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www.nber.org www.nber.org
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The Covid-19 crisis has lead to a reduction in the demand and supply of sectors that produce goods that need social interaction to be produced or consumed. We interpret the Covid-19 shock as a shock that reduces utility stemming from “social” goods in a two-sector economy with incomplete markets. We compare the advantages of lump-sum transfers versus a credit policy. For the same path of government debt, transfers are preferable when debt limits are tight, whereas credit policy is preferable when they are slack. A credit policy has the advantage of targeting fiscal resources toward agents that matter most for stabilizing demand. We illustrate this result with a calibrated model. We discuss various shortcomings and possible extensions to the model.
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www.nber.org www.nber.org
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During a pandemic, an individual's choices can determine outcomes not only for the individual but also for the entire community. Beliefs, constraints and preferences may shape behavior. This paper documents demographic differences in behaviors, beliefs, constraints and risk preferences across gender, income and political affiliation lines during the new coronavirus disease (COVID-19) pandemic. Our main analyses are based on data from an original nationally representative survey covering 5,500 adult respondents in the U.S. We find substantial gaps in behaviors and beliefs across gender, income and partisanship lines; in constraints across income levels; and in risk tolerance among men and women. Based on location data from a large sample of smartphones, we also document significant differences in mobility across demographics, which are consistent with our findings based on the survey data.
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I use Current Population Survey Data from February and April 2020 to examine how individual workers have transitioned between labor-market states and which workers have been hurt most by the COVID-19 pandemic. I find not only large effects on workers becoming unemployed but also a decline in labor-force participation, an increase in absence from one’s job, and a decrease in hours worked. Generally, more vulnerable populations—racial and ethnic minorities, those born outside the U.S., women with children, the least educated, and workers with a disability—have experienced the largest declines in the likelihood of (full-time) work and work hours.
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www.nber.org www.nber.org
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The COVID-19 pandemic resulted in stay-at-home policies and other social distancing behaviors in the United States in spring of 2020. This paper examines the impact that these actions had on emissions and expected health effects through reduced personal vehicle travel and electricity consumption. Using daily cell phone mobility data for each U.S. county, we find that vehicle travel dropped about 40% by mid-April across the nation. States that imposed stay-at-home policies before March 28 decreased travel slightly more than other states, but travel in all states decreased significantly. Using data on hourly electricity consumption by electricity region (e.g., balancing authority), we find that electricity consumption fell about six percent on average by mid-April with substantial heterogeneity. Given these decreases in travel and electricity use, we estimate the county-level expected improvements in air quality, and therefore expected declines in mortality. Overall, we estimate that, for a month of social distancing, the expected premature deaths due to air pollution from personal vehicle travel and electricity consumption declined by approximately 360 deaths, or about 25% of the baseline 1500 deaths. In addition, we estimate that CO2 emissions from these sources fell by 46 million metric tons (a reduction of approximately 19%) over the same time frame.
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www.nber.org www.nber.org
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This paper quantitatively analyzes how policy responses to the COVID-19 pandemic should differ in developing countries. To do so we build an incomplete-markets macroeconomic model with heterogeneous agents and epidemiological dynamics that features several of the key distinctions between advanced and developing economies germane to the pandemic. We focus in particular on differences in: age structure, fiscal capacity, healthcare capacity, informality, and the frequency of contacts between individuals at home, work, school and other locations. The model predicts that blanket lockdowns are less effective in developing countries, saving fewer lives per unit of lost GDP. In contrast, age-specific policies are even more effective, since they focus scarce public funds on shielding the smaller population of older individuals. School closures are also more effective at saving lives in developing countries, providing a greater reduction in secondary transmissions between children and older adults at home.
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www.nber.org www.nber.org
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How effective are restrictions on geographic mobility in limiting the spread of the COVID-19 pandemic? Using zip code data for Atlanta, Boston, Chicago, New York (NYC), and Philadelphia, we estimate that total COVID-19 cases per capita decrease on average by approximately 20 percent for every ten percentage point fall in mobility between February and May 2020. To address endogeneity concerns, we instrument for travel by the share of workers in remote work friendly occupations, and find a somewhat larger average decline of COVID-19 cases per capita of 27 percent. Using weekly data by zip code for NYC and a panel data specification including week and zip code fixed effects, we estimate a similar average decline of around 17 percent, which becomes larger when we measure mobility using NYC turnstile data rather than cellphone data. We find substantial heterogeneity across both space and over time, with stronger effects for NYC, Boston and Philadelphia than for Atlanta and Chicago, and the largest estimated coefficients for NYC in the early stages of the pandemic.
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www.nber.org www.nber.org
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We use anonymized and aggregated data from Facebook to show that areas with stronger social ties to two early COVID-19 "hotspots" (Westchester County, NY, in the U.S. and Lodi province in Italy) generally have more confirmed COVID-19 cases as of March 30, 2020. These relationships hold after controlling for geographic distance to the hotspots as well as for the income and population density of the regions. These results suggest that data from online social networks may prove useful to epidemiologists and others hoping to forecast the spread of communicable diseases such as COVID-19.
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www.nber.org www.nber.org
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No previous infectious disease outbreak, including the Spanish Flu, has impacted the stock market as forcefully as the COVID-19 pandemic. In fact, previous pandemics left only mild traces on the U.S. stock market. We use text-based methods to develop these points with respect to large daily stock market moves back to 1900 and with respect to overall stock market volatility back to 1985. We also evaluate potential explanations for the unprecedented stock market reaction to the COVID-19 pandemic. The evidence we amass suggests that government restrictions on commercial activity and voluntary social distancing, operating with powerful effects in a service-oriented economy, are the main reasons the U.S. stock market reacted so much more forcefully to COVID-19 than to previous pandemics in 1918-19, 1957-58 and 1968.
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www.nber.org www.nber.org
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COVID-19 abruptly impacted the labor market with the unemployment rate jumping to 14.7 percent less than two months after state governments began adopting social distancing measures. Unemployment of this magnitude has not been seen since the Great Depression. This paper provides the first study of how the pandemic impacted minority unemployment using CPS microdata through April 2020. African-Americans experienced an increase in unemployment to 16.6 percent, less than anticipated based on previous recessions. In contrast, Latinx, with an unemployment rate of 18.2 percent, were disproportionately hard hit by COVID-19. Adjusting for concerns of the BLS regarding misclassification of unemployment, we create an upper-bound measure of the national unemployment rate of 26.5 percent, which is higher than the peak observed in the Great Depression. The April 2020 upper-bound unemployment rates are an alarming 31.8 percent for blacks and 31.4 percent for Latinx. Difference-in-difference estimates suggest that blacks were, at most, only slightly disproportionately impacted by COVID-19. Non-linear decomposition estimates indicate that a slightly favorable industry distribution partly protected them from being hit harder by COVID-19. The most impacted group are Latinx. Difference-in-difference estimates unequivocally indicate that Latinx were disproportionately impacted by COVID-19. An unfavorable occupational distribution and lower skills contributed to why Latinx experienced much higher unemployment rates than whites. These findings of early impacts of COVID-19 on unemployment raise important concerns about long-term economic effects for minorities.
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www.nber.org www.nber.org
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We critically analyze the currently available status indicators of the COVID-19 epidemic so that state governors will have the guideposts necessary to decide whether to further loosen or instead retighten controls on social and economic activity. Overreliance on aggregate, state-level data in Wisconsin, we find, confounds the effects of the spring primary elections and the outbreak among meat packers. Relaxed testing standards in Los Angeles may have upwardly biased the observed trend in new infection rates. Reanalysis of New Jersey data, based upon the date an ultimately fatal case first became ill rather than the date of death, reveals that deaths have already peaked in that state. Evidence from Cook County, Illinois shows that trends in the percentage of positive tests can be wholly misleading. Trends on emergency department visits for influenza-like illness, advocated by the White House Guidelines, are unlikely to be informative. Data on hospital census counts in Orange County, California suggest that healthcare system-based indicators are likely to be more reliable and informative. An analysis of cumulative infections in San Antonio, Texas, shows how mathematical models intended to guide decisions on relaxation of social distancing are severely limited by untested assumptions. Universal coronavirus testing may not on its own solve difficult problems of data interpretation and causal inference.
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www.nber.org www.nber.org
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As countries around the world grapple with Covid-19, their economies are grinding to a halt. For the first time since the Great Depression both advanced economies and developing economies are in recession. Governments and central banks have responded to the pandemic and the economic crisis using both fiscal and monetary tools on a scale that the world has not witnessed before. This paper analyzes the determinants of fiscal and monetary policies during the Covid-19 crisis. We find that high-income countries announced larger fiscal policies than lower-income countries. We also find that a country’s credit rating is the most important determinant of its fiscal spending during the pandemic. High-income countries entered the crisis with historically low interest rates and as a result were more likely to use nonconventional monetary policy tools. These findings raise the concern that countries with poor credit histories – those with lower credit ratings and, in particular, lower-income countries – will not be able to deploy fiscal policy tools effectively during economic crises.
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www.nber.org www.nber.org
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Using data on over 6,000 firms across 56 economies during the first quarter of 2020, we evaluate the connection between corporate characteristics and stock price reactions to COVID-19 cases. We find that the pandemic-induced drop in stock prices was milder among firms with (a) stronger pre-2020 finances (more cash, less debt, and larger profits), (b) less exposure to COVID-19 through global supply chains and customer locations, (c) more CSR activities, and (d) less entrenched executives. Furthermore, the stock prices of firms with greater hedge fund ownership performed worse, and those of firms with larger non-financial corporate ownership performed better. We believe ours is the first paper to assess international, cross-firm stock price reactions to COVID-19 as functions of these pre-shock corporate characteristics.
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covid-19.iza.org covid-19.iza.org
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We analyze the consequences of the decision of French government to maintain the first round of the municipal elections on March 15, 2020 on local excess mortality in the following weeks. We exploit heterogeneity across municipalities in voter turnout, which we instrument using a measure of the intensity of local competition. The results reveal that a higher turnout was associated with a significantly higher death counts for the elderly population in the five weeks after the elections. If the historically low turnout in 2020 had been at its 2014 level, the number of deaths would have been 21.8 percent higher than the one that was recorded. More than three quarters of these additional deaths would have occurred among the individuals aged 80 and above.
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This paper provides a critical review of models of the spread of the coronavirus (SARS-CoV-2) epidemic that have been influential in recent policy decisions. There is tremendous opportunity for social scientists to advance the relevant literature as new and better data becomes available to bolster economic outcomes and save lives.
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We analyze the behavior of 401(k) plan participants during the first quarter of 2020, when COVID-19 generated historic volatility, large negative returns, and significant unemployment. Only 2.1% of participants invested in TDFs made any changes to their portfolios, with even lower rates of change among those defaulted into robo-advised managed accounts, suggesting that delegation can decrease the likelihood of portfolio mistakes by less sophisticated participants. While 16.6% of non-delegated participants made portfolio changes, these changes were more likely among more sophisticated participants and appear not to have reduced participants’ quarterly returns. Consistent with liquidity constraints, however, withdrawals spike following job loss.
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www.nber.org www.nber.org
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We construct a quantitative model of an economy hit by an epidemic. People differ by age and skill, and choose occupations and whether to commute to work or work from home, to maximize their income and minimize their fear of infection. Occupations differ by wage, infection risk, and the productivity loss when working from home. By setting the model parameters to replicate the progression of COVID-19 in South Korea and the United Kingdom, we obtain three key results. First, government-imposed lock-downs may not present a clear trade-off between GDP and public health, as commonly believed, even though its immediate effect is to reduce GDP and infections by forcing people to work from home. A premature lifting of the lock-down raises GDP temporarily, but infections rise over the next months to a level at which many people choose to work from home, where they are less productive, driven by the fear of infection. A longer lock-down eventually mitigates the GDP loss as well as flattens the infection curve. Second, if the UK had adopted South Korean policies, its GDP loss and infections would have been substantially smaller both in the short and the long run. This is not because Korea implemented policies sooner, but because aggressive testing and tracking more effectively reduce infections and disrupt the economy less than a blanket lock-down. Finally, low-skill workers and self-employed lose the most from the epidemic and also from the government policies. However, the policy of issuing “visas” to those who have antibodies will disproportionately benefit the low-skilled, by relieving them of the fear of infection and also by allowing them to get back to work.
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www.nber.org www.nber.org
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We study the effects of the temporary federal paid sick leave mandate that became effective April 1st, 2020 on ‘social distancing,’ as proxied by physical mobility behavior gleaned from cellular devices. The national paid leave policy was implemented in response to the COVID-19 outbreak and provided many private and many public employees, including individuals employed in the gig economy, with up to two weeks of paid leave. We study the early impact of the federal paid sick leave policy using interrupted time series analyses and difference-in-differences methods leveraging pre-FFCRA county-level differences in mobility. Our proxies for the ability to social distance are the share of cellular devices that are located in the workplace eight or more hours per day (‘full-time work’) and leave the home for less than one hour per day (‘at home’) in each county. Our findings suggest that the federal mandate decreased our full-time work proxy and increased our at home proxy. In particular, we find an initial decrease in working full-time of 17.7% and increase in staying home of 7.5%, with effects dissipating within three weeks. Given that up to 47% of employees are covered by the federal mandate, our effect sizes are arguably non-trivial
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www.nber.org www.nber.org
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The Paycheck Protection Program (PPP) aimed to quickly deliver hundreds of billions of dollars of loans to small businesses, with the loans administered via private banks. In this paper, we use firm-level data to document the demand and supply of PPP funds. Using an instrumental variables approach, we find that PPP loans led to a 14 to 30 percentage point increase in a business’s expected survival, and a positive but imprecise effect on employment. Moreover, the effects on survival were heterogeneous and highlight an important tradeoff faced by policymakers: while administering the loans via private banks allowed for rapid delivery of funds, it also limited the government’s ability to target the funding - instead allowing pre-existing connections between businesses and banks to determine which firms would benefit from the program.
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www.nber.org www.nber.org
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Using a large-scale survey of U.S. households during the Covid-19 pandemic, we study how new information about fiscal and monetary policy responses to the crisis affects households’ expectations. We provide random subsets of participants in the Nielsen Homescan panel with different combinations of information about the severity of the pandemic, recent actions by the Federal Reserve, stimulus measures, as well as recommendations from health officials. This experiment allows us to assess to what extent these policy announcements alter the beliefs and spending plans of households. In short, they do not, contrary to the powerful effects they have in standard macroeconomic models.
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www.nber.org www.nber.org
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We study the optimal lockdown policy for a planner who wants to control the fatalities of a pandemic while minimizing the output costs of the lockdown. We use the SIR epidemiology model and a linear economy to formalize the planner's dynamic control problem. The optimal policy depends on the fraction of infected and susceptible in the population. We parametrize the model using data on the COVID19 pandemic and the economic breadth of the lockdown. The quantitative analysis identifies the features that shape the intensity and duration of the optimal lockdown policy. Our baseline parametrization is conditional on a 1% of infected agents at the outbreak, no cure for the disease, and the possibility of testing. The optimal policy prescribes a severe lockdown beginning two weeks after the outbreak, covers 60% of the population after a month, and is gradually withdrawn covering 20% of the population after 3 months. The intensity of the lockdown depends on the gradient of the fatality rate as a function of the infected, and on the assumed value of a statistical life. The absence of testing increases the economic costs of the lockdown, and shortens the duration of the optimal lockdown which ends more abruptly. Welfare under the optimal policy with testing is higher, equivalent to a one-time payment of 2% of GDP.
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www.nber.org www.nber.org
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Evaluating the economic impact of "social distancing" measures taken to arrest the spread of COVID-19 raises a fundamental question about the modern economy: how many jobs can be performed at home? We classify the feasibility of working at home for all occupations and merge this classification with occupational employment counts. We find that 37 percent of jobs in the United States can be performed entirely at home, with significant variation across cities and industries. These jobs typically pay more than jobs that cannot be done at home and account for 46 percent of all US wages. Applying our occupational classification to 85 other countries reveals that lower-income economies have a lower share of jobs that can be done at home.
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www.nber.org www.nber.org
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We study supply and demand shocks in a general disaggregated model with multiple sectors, multiple factors, input-output linkages, downward nominal wage rigidities, credit-constraints, and a zero lower bound. We use the model to understand how the Covid-19 crisis, an omnibus of supply and demand shocks, affects output, unemployment, and inflation, and leads to the coexistence of tight and slack labor markets. Negative sectoral supply shocks are stagflationary, whereas negative sectoral demand shocks are deflationary. Furthermore, complementarities in production amplify Keynesian spillovers from negative supply shocks but mitigate them for negative demand shocks. In a stylized quantitative model of the US, we find supply and demand shocks each explain about half the reduction in real GDP. Although there is as much as 7% Keynesian unemployment, this is concentrated in certain markets. Hence, aggregate demand stimulus is less than half as effective as in a typical recession where all labor markets are slack.
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www.nber.org www.nber.org
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We examine how policymakers should react to a pandemic when there is significant uncertainty regarding key parameters relating to the disease. In particular, this paper explores how optimal mitigation policies change when incorporating uncertainty regarding the Case Fatality Rate (CFR) and the Basic Reproduction Rate (R0) into a macroeconomic SIR model in a robust control framework. This paper finds that optimal policy under parameter uncertainty generates an asymmetric optimal mitigation response across different scenarios: when the disease’s severity is initially underestimated the planner increases mitigation to nearly approximate the optimal response based on the true model, and when the disease’s severity is initially overestimated the planner maintains lower mitigation as if there is no uncertainty in order to limit excess economic costs.
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www.nber.org www.nber.org
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Globalization is expected to be reversed, at least partially, in the post pandemic era. The Great Financial Recession of 2008–10 marked a historic turning point in the direction of weakening the degree of global economic integration. Now, in the post-pandemic era, policymakers appear poised to take deliberate steps to reinforce the movement toward de-globalization. At the same time, safety nets are expected to be strengthened. In this paper, we develop a model, with which we analyze central macroeconomic interactions between globalization and safety nets. We put together stylized elements of trade globalization, financial globalization, international tax competition, immigration, and welfare state, all in a two-skill, two-period stylized model, where policy (taxes and social benefits) is determined through majority voting.
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www.nber.org www.nber.org
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In response to the ongoing COVID-19 pandemic, the US government brought about a collection of fiscal stimulus measures: the 2020 CARES Act. Among other provisions, this Act directed cash payments to households. We analyze households’ spending responses using high-frequency transaction data. We also explore heterogeneity by income levels, recent income declines, and liquidity. We find that households respond rapidly to receipt of stimulus payments, with spending increasing by $0.25-$0.35 per dollar of stimulus during the first 10 days. Households with lower incomes, greater income drops, and lower levels of liquidity display stronger responses. Liquidity plays the most important role, with no observed spending response for households with high levels of bank account balances. Relative to the effects of previous economic stimulus programs in 2001 and 2008, we see much smaller increases in durables spending and larger increases in spending on food, likely reflecting the impact of shelter-in-place orders and supply disruptions. We hope that our results inform the current debate about appropriate policy measures.
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www.nber.org www.nber.org
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The U.S. economy currently faces a truly extraordinary degree of uncertainty as a consequence of the COVID-19 pandemic. In these circumstances, the Federal Reserve could begin highlighting alternative scenarios to illustrate key risks to the economic outlook, and such scenarios could inform the Fed’s policy strategy and public communications. In this paper, we present a set of illustrative scenarios, including a baseline scenario with a rapid but incomplete recovery this year (an upward-tilting checkmark), a benign scenario in which an effective cure or vaccine becomes available and facilitates a nearly complete recovery by mid-2021, and a severely adverse scenario involving persistently high unemployment and disinflationary pressures. Insights into these scenarios can be drawn from key historical episodes, including the Spanish flu, the Great Depression, the end of World War II, and the global financial crisis. We conclude by identifying key challenges that the Federal Reserve might face in adjusting its monetary policy and emergency credit facilities under each of these alternative scenarios.
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Using weekly administrative payroll data from the largest U.S. payroll processing company, we measure the evolution of the U.S. labor market during the first four months of the global COVID-19 pandemic. After aggregate employment fell by 21 percent through late-April, employment rebounded somewhat through late-June. The re-opening of temporarily shuttered businesses contributed significantly to the employment rebound, particularly for smaller businesses. We show that worker recall has been an important component of recent employment gains for both re-opening and continuing businesses. Employment losses have been concentrated disproportionately among lower wage workers; as of late June employment for workers in the lowest wage quintile was still 20 percent lower relative to mid-February levels. As a result, average base wages increased between February and June, though this increase arose entirely through a composition effect. Finally, we document that businesses have cut nominal wages for almost 7 million workers while forgoing regularly scheduled wage increases for many others.
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The “shutdown” economy of April 2020 is compared to a normally functioning economy both in terms of market and nonmarket activities. Three novel methods and data indicate that the shutdown puts market production 25-28 percent below normal in the short run. At an annual rate, the shutdown is costing $7 trillion, or about $15,000 per household per quarter. Employment already fell 28 million by early April 2020. These costs indicate, among other things, the value of innovation in both health and general business sectors that can accelerate the time when normal activity resumes.
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In SIR models, homogeneous or with a network structure, infection rates are assumed to be exogenous. However, individuals adjust their behavior. Using daily data for 89 cities worldwide, we document that mobility falls in response to fear, as approximated by Google search terms. Combining these data with experimentally validated measures of social preferences at the regional level, we find that stringency measures matter less if individuals are more patient and altruistic preference traits, and exhibit less negative reciprocity community traits. We modify the homogeneous SIR and the SIR-network model to include agents' optimizing decisions on social interactions. Susceptible individuals internalize infection risk based on their patience, infected ones do so based on their altruism, and reciprocity matters for internalizing risk in SIR networks. A planner further restricts interactions due to a static and a dynamic inefficiency in the homogeneous SIR model, and due to an additional reciprocity inefficiency in the SIR-network model. We show that partial or targeted lockdown policies are efficient only when it is possible to identify infected individuals.
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www.nber.org www.nber.org
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Rationing of medical resources is a critical issue in the COVID-19 pandemic. Most existing triage protocols are based on a priority point system, in which a formula specifies the order in which the supply of a resource, such as a ventilator, is to be rationed for patients. A priority point system generates an identical priority ranking specifying claims on all units. Triage protocols in some states (e.g. Michigan) prioritize frontline health workers giving heavier weight to the ethical principle of instrumental value. Others (e.g. New York) do not, reasoning that if frontline workers obtain high enough priority, there is a risk that they obtain all units and none remain for the general community. This debate is pressing given substantial COVID-19 health risks for frontline workers. In this paper, we analyze the consequences of rationing medical resources through a reserve system. In a reserve system, resources are placed into multiple categories. Priorities guiding allocation of units can reflect different ethical values between these categories. A reserve system provides additional flexibility over a priority point system because it does not dictate a single priority order for the allocation of all units. It offers a middle-ground approach that balances competing objectives, such as in the medical worker debate. This flexibility requires attention to implementation, especially the processing order of reserve categories. We describe our model of a reserve system, characterize its potential outcomes, and examine distributional implications of particular reserve systems. We also discuss several practical considerations with triage protocol design.
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New York City’s multipronged subway system was a major disseminator – if not the principal transmission vehicle – of coronavirus infection during the initial takeoff of the massive epidemic that became evident throughout the city during March 2020. The near shutoff of subway ridership in Manhattan – down by over 90 percent at the end of March – correlates strongly with the substantial increase in the doubling time of new cases in this borough. Subway lines with the largest drop in ridership during the second and third weeks of March had the lowest subsequent rates of infection in the zip codes traversed by their routes. Maps of subway station turnstile entries, superimposed upon zip code-level maps of reported coronavirus incidence, are strongly consistent with subway-facilitated disease propagation. Reciprocal seeding of infection appears to be the best explanation for the emergence of a single hotspot in Midtown West in Manhattan.
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www.nber.org www.nber.org
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We study the role of global supply chains in the impact of the Covid-19 pandemic on GDP growth for 64 countries. We discipline the labor supply shock across sectors and countries using the fraction of work in the sector that can be done from home, interacted with the stringency with which countries imposed lockdown measures. Using the quantitative framework and methods developed in Huo, Levchenko, and Pandalai-Nayar (2020), we show that the average real GDP downturn due to the Covid-19 shock is expected to be - 29:6%, with one quarter of the total due to transmission through global supply chains. However, "renationalization" of global supply chains does not in general make countries more resilient to pandemic-induced contractions in labor supply. The average GDP drop would have been - 30:2% in a world without trade in inputs and final goods. This is because eliminating reliance on foreign inputs increases reliance on the domestic inputs, which are also disrupted due to nationwide lockdowns. In fact, trade can insulate a country imposing a stringent lockdown from the pandemic-shock, as its foreign inputs are less disrupted than its domestic ones. Finally, unilateral lifting of the lockdowns in the largest economies can contribute as much as 2.5% to GDP growth in some of their smaller trade partners.
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We examine household wealth across birth cohorts and over time using data from the Survey of Consumer Finances. We show that although the Great Recession reduced wealth in every age group, longer-term trends indicate that the wealth of older age groups has increased while the wealth of younger age groups has declined. A substantial share of these changes, in both directions, can be explained by changes in household demographic and economic characteristics. As for the millennial generation, their median wealth in 2016 was lower than the wealth of any similarly aged cohort between 1989 and 2007. Millennials will have several advantages in wealth accumulation relative to previous generations, such as more education and longer working lives, but also several disadvantages, including weak prospects for economic growth and delays in home purchase and marriage. The millennial generation contains a significantly higher percentage of minorities than previous generations. We estimate that minority households have tended to accumulate less wealth than whites in the past, controlling for household characteristics, and the difference appears to be growing over time for Blacks relative to whites. These results apply to the period before the COVID-19 pandemic and are best interpreted as addressing generational wealth patterns through 2016 and providing a pre-COVID benchmark against which future studies can be compared.
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The Covid-19 pandemic has motivated a myriad of studies and proposals on how economic policy should respond to this colossal shock. But in this debate it is seldom recognized that the health shock is not entirely exogenous. Its magnitude and dynamics themselves depend on economic policies, and the explicit or implicit incentives those policies provide. To illuminate the feedback loops between medical and economic factors we develop a minimal economic model of pandemics. In the model, as in reality, individual decisions to comply (or not) with virus-related public health directives depend on economic variables and incentives, which themselves respond to current economic policy and expectations of future policies. The analysis yields several practical lessons: because policies affect the speed of virus transmission via incentives, public health measures and economic policies can complement each other, reducing the cost of attaining desired social goals; expectations of expansionary macroeconomic policies during the recovery phase can help reduce the speed of infection, and hence the size of the health shock; the credibility of announced policies is key to rule out both self-fulfilling pessimistic expectations and time inconsistency problems. The analysis also yields a critique of the current use of SIR models for policy evaluation, in the spirit of Lucas (1983).
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Emerging out of the “reproducibility crisis” in science, metascientists have become central players in debates about research integrity, scholarly communication, and science policy. The goal of this article is to introduce metascience to STS scholars, detail the scientific ideology that is apparent in its articles, strategy statements, and research projects, and discuss its institutional and intellectual future. Put simply, metascience is a scientific social movement that seeks to use the tools of science- especially, quantification and experimentation- to diagnose problems in research practice and improve efficiency. It draws together data scientists, experimental and statistical methodologists, and open science activists into a project with both intellectual and policy dimensions. Metascientists have been remarkably successful at winning grants, motivating news coverage, and changing policies at science agencies, journals, and universities. Moreover, metascience represents the apotheosis of several trends in research practice, scientific communication, and science governance including increased attention to methodological and statistical criticism of scientific practice, the promotion of “open science” by science funders and journals, the growing importance of both preprint and data repositories for scientific communication, and the new prominence of data scientists as research makes a turn toward Big Science.
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We extend the canonical epidemiology model to study the interaction between economic decisions and epidemics. Our model implies that people’s decision to cut back on consumption and work reduces the severity of the epidemic, as measured by total deaths. These decisions exacerbate the size of the recession caused by the epidemic. The competitive equilibrium is not socially optimal because infected people do not fully internalize the effect of their economic decisions on the spread of the virus. In our benchmark model, the best simple containment policy increases the severity of the recession but saves roughly half a million lives in the U.S.
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What are the medium- to long-term effects of pandemics? How do they differ from other economic disasters? We study major pandemics using the rates of return on assets stretching back to the 14th century. Significant macroeconomic after-effects of pandemics persist for about decades, with real rates of return substantially depressed, in stark contrast to what happens after wars. Our findings are consistent with the neoclassical growth model: capital is destroyed in wars, but not in pandemics; pandemics instead may induce relative labor scarcity and/or a shift to greater precautionary savings.
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We analyze the effects of an epidemic in three standard macroeconomic models. We find that the neoclassical model does not rationalize the positive comovement of consumption and investment observed in recessions associated with an epidemic. Introducing monopolistic competition into the neoclassical model remedies this shortcoming even when prices are completely flexible. Finally, sticky prices lead to a larger recession but do not fundamentally alter the predictions of the monopolistic competition model.
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Uncertainty rises in recessions and falls in booms. But what is the causal relationship? We construct cross-country panel data on stock market levels and volatility and use natural disasters, terrorist attacks, and political shocks as instruments in regressions and VAR estimations. We find that increased volatility robustly lowers growth. We also structurally estimate a heterogeneous firms business cycle model with uncertainty and disasters and use this to analyze our empirical results. Finally, using our VAR results we estimate COVID-19 will reduce US GDP by 9% in 2020 based on the initial stock market returns and volatility response.
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Group testing increases efficiency by pooling patient specimens and clearing the entire group with one negative test. Optimal grouping strategy is well studied in one-off testing scenarios with reasonably well-known prevalence rates and no correlations in risk. We discuss how the strategy changes in a pandemic environment with repeated testing, rapid local infection spread, and highly uncertain risk. First, repeated testing mechanically lowers prevalence at the time of the next test. This increases testing efficiency, such that increasing frequency by x times only increases expected tests by around √x rather than x. However, this calculation omits a further benefit of frequent testing: infected people are quickly removed from the population, which lowers prevalence and generates further efficiency. Accounting for this decline in intra-group spread, we show that increasing frequency can paradoxically reduce the total testing cost. Second, we show that group size and efficiency increases with intra-group risk correlation, which is expected in natural test groupings based on proximity. Third, because optimal groupings depend on uncertain risk and correlation, we show how better estimates from machine learning can drive large efficiency gains. We conclude that frequent group testing, aided by machine learning, is a promising and inexpensive surveillance strategy.
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www.nber.org www.nber.org
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We analyze how investor expectations about economic growth and stock returns changed during the February-March 2020 stock market crash induced by the COVID-19 pandemic, as well as during the subsequent partial stock market recovery. We surveyed retail investors who are clients of Vanguard at three points in time: (i) on February 11-12, around the all-time stock market high, (ii) on March 11-12, after the stock market had collapsed by over 20%, and (iii) on April 16-17, after the market had rallied 25% from its lowest point. Following the crash, the average investor turned more pessimistic about the short-run performance of both the stock market and the real economy. Investors also perceived higher probabilities of both further extreme stock market declines and large declines in short-run real economic activity. In contrast, investor expectations about long-run (10-year) economic and stock market outcomes remained largely unchanged, and, if anything, improved. Disagreement among investors about economic and stock market outcomes also increased substantially following the stock market crash, with the disagreement persisting through the partial market recovery. Those respondents who were the most optimistic in February saw the largest decline in expectations, and sold the most equity. Those respondents who were the most pessimistic in February largely left their portfolios unchanged during and after the crash.
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We extend the baseline Susceptible-Exposed-Infectious-Recovered (SEIR) infectious disease epidemiology model to understand the role of testing and case-dependent quarantine. Our model nests the SEIR model. During a period of asymptomatic infection, testing can reveal infection that otherwise would only be revealed later when symptoms develop. Along with those displaying symptoms, such individuals are deemed known positive cases. Quarantine policy is case-dependent in that it can depend on whether a case is unknown, known positive, known negative, or recovered. Testing therefore makes possible the identification and quarantine of infected individuals and release of non-infected individuals. We fix a quarantine technology—a parameter determining the differential rate of transmission in quarantine—and compare simple testing and quarantine policies. We start with a baseline quarantine-only policy that replicates the rate at which individuals are entering quarantine in the US in March, 2020. We show that the total deaths that occur under this policy can occur under looser quarantine measures and a substantial increase in random testing of asymptomatic individuals. Testing at a higher rate in conjunction with targeted quarantine policies can (i) dampen the economic impact of the coronavirus and (ii) reduce peak symptomatic infections—relevant for hospital capacity constraints. Our model can be plugged into richer quantitative extensions of the SEIR model of the kind currently being used to forecast the effects of public health and economic policies.
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Hoarding of staples has long worried policymakers due to concerns about shortages. We quantify how sticky store prices---delayed price adjustment to shocks by reputable retailers---exacerbate hoarding. When prices are sticky, households hoard not only for precautionary motives but also non-precautionary motives: they stockpile as they would during a standard retail promotion or for the purpose of retail arbitrage. Using US supermarket scanner data covering the 2008 Global Rice Crisis, an episode driven by an observable cost shock due an Indian ban on raw rice exports, we find that sticky prices account for a sizeable fraction of hoarding. Hoarding is mostly for own use and more prevalent among richer households. Our findings are consistent with media reports of distributional concerns associated with hoarding during the Covid-19 Pandemic.
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A key issue for the ongoing COVID-19 pandemic is whether non-pharmaceutical public-health interventions (NPIs) retard death rates. The best information about these effects likely comes from flu-related excess deaths in large U.S. cities during the second wave of the Great Influenza Pandemic, September 1918-February 1919. NPIs, as measured by Markel, et al. (2007), are in three categories: school closings, prohibitions on public gatherings, and quarantine/isolation. Although an increase in NPIs clearly flattened the curve in the sense of sharply reducing the ratio of peak to average death rates, the estimated effect on overall deaths is small and statistically insignificant. One possibility is that the NPIs were not more successful in curtailing overall mortality because the average duration of NPIs was only around one month. Another possibility is that NPIs mainly delay deaths rather than eliminating them.
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Epidemiology models used in macroeconomics generally assume that people know their current health status. In this paper, we consider a more realistic environment in which people are uncertain about their health status. We use our model to study the impact of testing with and without quarantining infected people. We find that testing without quarantines can worsen the economic and health repercussions of an epidemic. In contrast, a policy that uses tests to quarantine infected people has very large social benefits. Critically, this policy ameliorates the sharp tradeoff between declines in economic activity and health outcomes that is associated with broad-based containment policies like lockdowns. This amelioration is particularly dramatic when people who recover from an infection acquire only temporary immunity to the virus.
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We use data from the aggregate stock market and dividend futures to quantify how investors’ expectations about economic growth evolve across horizons in response to the coronavirus outbreak and subsequent policy responses until June 2020. Dividend futures, which are claims to dividends on the aggregate stock market in a particular year, can be used to directly compute a lower bound on growth expectations across maturities or to estimate expected growth using a forecasting model. We show how the actual forecast and the bound evolve over time. As of June 8, our forecast of annual growth in dividends is down 9% in the US and 14% in the EU compared to January 1, and our forecast of GDP growth is down by 2.0% in the US and 3.1% in the EU. The lower bound on the change in expected dividends is -18% in the US and -25% in the EU at the 2-year horizon. News about fiscal stimulus around March 24 boosts the stock market and long-term growth but did little to increase short-term growth expectations. Expected dividend growth has improved since April 1 in both the US and the EU. We conclude by developing and estimating a simple model of the crisis to understand the joint dynamics of short-term dividend futures, stock markets, and bond markets.
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www.nber.org www.nber.org
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Mortality and economic contraction during the 1918-1920 Great Influenza Pandemic provide plausible upper bounds for outcomes under the coronavirus (COVID-19). Data for 48 countries imply flu-related deaths in 1918-1920 of 40 million, 2.1 percent of world population, implying 150 million deaths when applied to current population. Regressions with annual information on flu deaths 1918-1920 and war deaths during WWI imply flu-generated economic declines for GDP and consumption in the typical country of 6 and 8 percent, respectively. There is also some evidence that higher flu death rates decreased realized real returns on stocks and, especially, on short-term government bills.
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www.nber.org www.nber.org
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Mandated shutdowns of nonessential businesses during the COVID-19 crisis brought into sharp relief the tradeoff between public health and a healthy economy. This paper documents the short-run effects of shutdowns during the Spanish flu pandemic of 1918, which provides a useful counterpoint to choices made in 2020. The 1918 closures were shorter and less sweeping, in part because the US was at war and the Wilson administration was unwilling to let public safety jeopardize the war’s prosecution. The result was widespread sickness, which pushed some businesses to shutdown voluntarily; others operated shorthanded. Using hand-coded, high-frequency data (mostly weekly) this study reports three principal results. First, retail sales declined during the three waves of the pandemic; manufacturing activity slowed, but by less than retail. Second, worker absenteeism due to either sickness or fear of contracting the flu reduced output in several key sectors and industries that were not ordered closed by as much as 10 to 20% in weeks of high excess mortality. Output declines were the result of labor-supply rather than demand shocks. And, third, mandated closures are not associated with increases in the number or aggregate dollar value of business failures, but the number and aggregate dollar value of business failures increased modestly in weeks of high excess mortality. The results highlight that the tradeoff between mandated closures and economic activity is not the only relevant tradeoff facing public health authorities. Economic activity also declines, sometimes sharply, during periods of unusually high influenza-related illness and excess mortality even absent mandated business closures.
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www.nber.org www.nber.org
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We revisit measurement of Employer-to-Employer (EE) transitions, the main engine of labor market competition and employment reallocation, in the monthly Current Population Survey (CPS). We follow Fallick and Fleischman (2004) and exploit a key survey question introduced with the 1994 CPS redesign. We detect a sudden and sharp increase in the incidence of missing answers to this question starting in 2007, when the U.S. Census Bureau introduced a change in survey methodology, the Respondent Identification Policy (RIP). We show evidence of selection into answering the EE question by both observable and unobservable worker characteristics that correlate with EE mobility. We propose a selection model and a procedure to impute missing answers to the key survey question, thus EE transitions, after the introduction of the RIP. Our imputed aggregate EE series restores a close congruence with the business cycle, especially with the onset of the Great Recession, exhibits a much less dramatic drop in 2008-2009 and a full recovery by 2016, and eliminates the spurious appearance of declining EE dynamism in the US labor market after 2000. We also offer the first evidence of the (large and negative) impact of the COVID-19 crisis on EE reallocation.
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We examine the stock trading behavior and returns of U.S. senators from 2012-March 2020. Stocks purchased by senators on average slightly underperform stocks in the same industry and size (market cap) categories by 11 basis points, 28 basis points and 17 basis points at the 1, 3, and 6-month time horizons. Stocks sold by senators underperform slightly for the first three months and then outperform slightly (a statistically insignificant 14 basis points) at the one year mark. We find no evidence that senators have industry specific stock picking ability related to their committee assignments. Neither Republican nor Democratic senators are skilled at picking stocks to buy, while stocks sold by Republican senators underperform by 50 basis points over three months. Stocks sold following the January 24th COVID-19 briefing do underperform the market by a statistically significant 9 percent while stocks purchased during this period underperform by 3 percent. Our findings contrast somewhat with recent news reports and studies of pre-STOCK Act (2012) returns, though are consistent with Eggers and Hainmueller (2013).
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www.nber.org www.nber.org
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We study the real-time signals provided by the Aruoba-Diebold-Scotti Index of Business conditions (ADS) for tracking economic activity at high frequency. We start with exit from the Great Recession, comparing the evolution of real-time vintage beliefs to a "final" late-vintage chronology. We then consider entry into the Pandemic Recession, again tracking the evolution of real-time vintage beliefs. ADS swings widely as its underlying economic indicators swing widely, but the emerging ADS path as of this writing (late June) indicates a return to growth in May. The trajectory of the nascent recovery, however, is highly uncertain (particularly as COVID-19 spreads in the South and West) and could be revised or eliminated as new data arrive.
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www.nber.org www.nber.org
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We study the response of an economy to an unexpected epidemic. Households mitigate the spread of the disease by reducing consumption, reducing hours worked, and working from home. Working from home is subject to learning-by-doing and the capacity of the health care system is limited. A social planner worries about two externalities, an infection externality and a healthcare congestion externality. Private agents’ mitigation incentives are weak and biased. We show that private safety incentives can even decline at the onset of the epidemic. The planner, on the other hand, implements front-loaded mitigation policies and encourages working from home immediately. In our calibration, assuming a CFR of 1% and an initial infection rate of 0.1%, private mitigation reduces the cumulative death rate from 2.5% of the initially susceptible population to about 1.75%. The planner optimally imposes a drastic suppression policy and reduces the death rate to 0.15% at the cost of an initial drop in consumption of around 25%.
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www.nber.org www.nber.org
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We analyze the sovereign bond issuance data of eight major emerging markets (EM) - Brazil, China, India, Indonesia, Mexico, Russia, Turkey and South Africa - in 1970-2018. Our analysis suggests EMs are more likely to issue local-currency sovereign bonds if their currencies appreciated before the global financial crisis of 2008 (GFC). Inflation-targeting monetary policy regime increases the likelihood of issuing local-currency debt before GFC but not after. EMs that offer higher yields are more likely to issue local-currency bond after GFC. EM bonds which are smaller in size, shorter in maturity, or lower in coupon rate are more likely to be issued in local currency. Future data will allow us to test and identify structural changes associated with the COVID-19 pandemic and its aftermath.
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www.nber.org www.nber.org
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This note studies optimal lockdown policy in a model in which the government can limit a pandemic’s impact via a lockdown at the cost of lower economic output. A government would like to commit to limit the extent of future lockdown in order to support more optimistic investor expectations in the present. However, such a commitment is not credible since investment decisions are sunk when the government makes the lockdown decision in the future. The commitment problem is more severe if lockdown is sufficiently effective at limiting disease spread or if the size of the susceptible population is sufficiently large. Credible rules that limit a government’s ability to lock down the economy in the future can improve the efficiency of lockdown policy.
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www.nber.org www.nber.org
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We develop a simple dynamic economic model of epidemic transmission designed to be consistent with widely used SIR biological models of the transmission of epidemics, while incorporating economic benefits and costs as well. Our main finding is that targeted testing and isolation policies deliver large welfare gains relative to optimal policies when these tools are not used. Specifically, we find that when testing and isolation are not used, optimal policy delivers a welfare gain equivalent to a 0.6% permanent increase in consumption relative to no intervention. The welfare gain arises because under the optimal policy, the planner engineers a sharp recession that reduces aggregate output by about 40% for about 3 months. This sharp contraction in economic activity reduces the rate of transmission and reduces cumulative deaths by about 0.1%. When testing policies are used, optimal policy delivers a welfare gain equivalent to a 3% permanent increase in consumption. The associated recession is milder in that aggregate output declines by about 15% and cumulative deaths are reduced by .3%. Much of this welfare gain comes from isolating infected individuals. When individuals who are suspected to be infected are isolated without any testing, optimal policy delivers a welfare gain equivalent to a 2% increase in permanent consumption.
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We study the effects of testing policy on voluntary social distancing and the spread of an infection. Agents decide their social activity level, which determines a social network over which the virus spreads. Testing enables the isolation of infected individuals, slowing down the infection. But greater testing also reduces voluntary social distancing or increases social activity, exacerbating the spread of the virus. We show that the effect of testing on infections is non-monotone. This non-monotonicity also implies that the optimal testing policy may leave some of the testing capacity of society unused.
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This note lays out the basic Susceptible-Infected-Recovered (SIR) epidemiological model of contagion, with a target audience of economists who want a framework for understanding the effects of social distancing and containment policies on the evolution of contagion and interactions with the economy. A key parameter, the asymptomatic rate (the fraction of the infected that are not tested under current guidelines), is not well estimated in the literature because tests for the coronavirus have been targeted at the sick and vulnerable, however it could be estimated by random sampling of the population. In this simple model, different policies that yield the same transmission rate β have the same health outcomes but can have very different economic costs. Thus, one way to frame the economics of shutdown policy is as finding the most efficient policies to achieve a given β, then determining the path of β that trades off the economic cost against the cost of excess lives lost by overwhelming the health care system.
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www.nber.org www.nber.org
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Using the 2012-13 American Time Use Survey, I find that both who people spend time with and how they spend it affect their happiness, adjusted for numerous demographic and economic variables. Satisfaction among married individuals increases most with additional time spent with spouse. Among singles, satisfaction decreases most as more time is spent alone. Assuming that lock-downs constrain married people to spend time solely with their spouses, simulations show that their happiness may have been increased compared to before the lock-downs; but sufficiently large losses of work time and income reverse this inference. Simulations demonstrate clearly that, assuming lock-downs impose solitude on singles, their happiness was reduced, reductions that are made more severe by income and work losses.
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Millions of goods and services are now unavailable in many countries due to the current coronavirus pandemic, dramatically impacting on the construction of key economic statistics used for informing policy. This situation is unprecedented; hence methods to address it have not previously been developed. Current advice to national statistical offices from the IMF, Eurostat and the UN is shown to result in downward bias in the CPI and upward bias in real consumption. We conclude that the only way to produce a meaningful CPI within the lockdown period is through establishing a continuous consumer expenditure survey.
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www.nber.org www.nber.org
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Recent outbreaks of infectious pathogens such as Zika, Ebola, and COVID-19 have underscored the need for the dependable availability of vaccines against emerging infectious diseases (EIDs). The cost and risk of R&D programs and uniquely unpredictable demand for EID vaccines have discouraged vaccine developers, and government and nonprofit agencies have been unable to provide timely or sufficient incentives for their development and sustained supply. We analyze the economic returns of a portfolio of EID vaccine assets, and find that under realistic financing assumptions, the expected returns are significantly negative, implying that the private sector is unlikely to address this need without public-sector intervention. We have sized the financing deficit for this portfolio and analyze several potential solutions, including price increases, enhanced public-private partnerships, and subscription models through which individuals would pay annual fees to obtain access to a portfolio of vaccines in the event of an outbreak.
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www.nber.org www.nber.org
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Recent dramatic and deadly increases in global wildfire activity have increased attention on the causes of wildfires, their consequences, and how risk from fire might be mitigated. Here we bring together data on the changing risk and societal burden of wildfire in the US. We estimate that nearly 50 million homes are currently in the wildland-urban interface in the US, a number increasing by 1 million houses every 3 years. Using a statistical model that links satellite-based fire and smoke data to pollution monitoring stations, we estimate that wildfires have accounted for up to 25% of PM2.5 in recent years across the US, and up to half in some Western regions. We then show that ambient exposure to smoke-based PM2.5 does not follow traditional socioeconomic exposure gradients. Finally, using stylized scenarios, we show that fuels management interventions have large but uncertain impacts on health outcomes, and that future health impacts from climate-change-induced wildfire smoke could approach projected overall increases in temperature-related mortality from climate change. We draw lessons for research and policy.
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www.nber.org www.nber.org
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We take this question to be isomorphic to, "What Keeps Fixed Exchange Rates Fixed?" and address it with analysis familiar in exchange-rate economics. Stablecoins solve the volatility problem by pegging to a national currency, typically the US dollar, and are used as vehicles for exchanging national currencies into non-stable cryptocurrencies, with some stablecoins having a ratio of trading volume to outstanding supply exceeding one daily. Using a rich dataset of signed trades and order books on multiple exchanges, we examine how peg-sustaining arbitrage stabilizes the price of the largest stablecoin, Tether. We find that stablecoin issuance, the closest analogue to central-bank intervention, plays only a limited role in stabilization, pointing instead to stabilizing forces on the demand side. Following Tether's introduction to the Ethereum blockchain in 2019, we find increased investor access to arbitrage trades, and a decline in arbitrage spreads from 70 to 30 basis points. We also pin down which fundamentals drive the two-sided distribution of peg-price deviations: Premiums are due to stablecoins' role as a safe haven, exhibiting, for example, premiums greater than 100 basis points during the COVID-19 crisis of March 2020; discounts derive from liquidity effects and collateral concerns.
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www.nber.org www.nber.org
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Despite evidence to the contrary, three common myths persist about federal regulations. The first myth is that many regulations concern the environment, but in fact only a small minority of regulations are environmental. The second myth is that most regulations contain quantitative estimates of costs or benefits. However, these quantitative estimates appear rarely in published rules, contradicting the impression given by executive orders and Office of Management and Budget guidance, which require cost-benefit analysis (CBA) and clearly articulate sound economic principles for conducting CBA. Environmental rules have relatively higher-quality CBAs, at least by the low standards of other federal rules. The third myth, which is particularly relevant to the historic regulations promulgated during the COVID-19 pandemic, is the misperception that regulatory costs are primarily clerical, rather than opportunity or resource costs. If technocrats have triumphed in the regulatory arena, their victory has not been earned by the merits of their analysis.
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www.nber.org www.nber.org
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We build a minimalist model of the macroeconomics of a pandemic, with two essential components. The first is productivity-related: if the virus forces firms to shed labor beyond a certain threshold, productivity suffers. The second component is a credit market imperfection: because lenders cannot be sure a borrower will repay, they only lend against collateral. Expected productivity determines collateral value; in turn, collateral value can limit borrowing and productivity. As a result, adverse shocks have large magnification effects, in an unemployment and asset price deflation doom loop. There may be multiple equilibria, so that pessimistic expectations can push the economy to a bad equilibrium with limited borrowing and low employment and productivity. The model helps identify policies to fight the effects of the pandemic. Traditional expansionary fiscal policy has no beneficial effects, while cutting interest rates has a limited effect if the initial real interest rate is low. By contrast, several unconventional policies, including wage subsidies, helicopter drops of liquid assets, equity injections, and loan guarantees, can keep the economy in a full-employment, high-productivity equilibrium. Such policies can be fiscally expensive, so their implementation is feasible only with ample fiscal space or emergency financing from abroad.
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www.nber.org www.nber.org
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We characterize how U.S. global systemically important banks (GSIBs) supply short-term dollar liquidity in repo and foreign exchange swap markets in the post-Global Financial Crisis regulatory environment and serve as the "lenders-of-second-to-last-resort". Using daily supervisory bank balance sheet information, we find that U.S. GSIBs modestly increase their dollar liquidity provision in response to dollar funding shortages, particularly at period-ends, when the U.S. Treasury General Account balance increases, and during the balance sheet taper of the Federal Reserve. The increase in the dollar liquidity provision is mainly financed by reducing excess reserve balances at the Federal Reserve. Intra-firm transfers between depository institutions and broker-dealer subsidiaries within the same bank holding company are crucial to this type of "reserve-draining" intermediation. Finally, we discuss factors that contributed to the repo spike in September 2019 and the subsequent response of U.S. GSIBs to recent policy interventions by the Federal Reserve.
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www.nber.org www.nber.org
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Using real-time register data we document the magnitude, dynamics and socio-economic characteristics of the crisis-induced temporary and permanent layoffs in Norway. We find evidence that the effects of social distancing measures quickly spread to industries that were not directly affected by policy. Close to 90% of layoffs are temporary, although this classification may change as the crisis progresses. Still, there is suggestive evidence of immediate stress on a subset of firms that manifests itself in permanent rather than temporary layoffs. We find that the shock had a strong socio-economic gradient, hit a financially vulnerable population, and parents with younger children, and was driven by layoffs in smaller, less productive, and financially weaker firms. Consequently though, the rise in unemployment likely overstates the loss of output associated with the layoffs by about a third.
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www.nber.org www.nber.org
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I look at prevention through an economic lens and make three main points. First, those advocating preventive measures are often asked how much money a given measure saves. This question is misguided. Rather preventive measures can be thought of as insurance, with a certain cost in the present that may or may not pay off in the future. In fact, although most medical preventive measures improve expected health, they do not save money. Various lifestyle and early childhood interventions, however, may both save money and improve health. Second, preventive measures, including medical and lifestyle measures, are heterogeneous in their value, both across measures and, within measure, across individuals. As a result, generalizations in everyday discourse about the value of prevention can be overly broad. Third, health insurance coverage for medical preventive measures should generally be more extensive than coverage for the treatment of a medical condition, though full coverage of preventive services is not necessarily optimal.
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www.youtube.com www.youtube.comYouTube2
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In this webinar, we demonstrate the OSF tools available for contributors, labs, centers, and institutions that support stronger collaborations. The demo includes useful practices like: contributor management, the OSF wiki as an electronic lab notebook, using OSF to manage online courses and syllabi, and more. Finally, we look at how OSF Institutions can provide discovery and intelligence gathering infrastructure so that you can focus on conducting and supporting exceptional research. The Center for Open Science’s ongoing mission is to provide community and technical resources to support your commitments to rigorous, transparent research practices. Visit cos.io/institutions to learn more.
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Networking is the most honorable and valuable endeavor in which you can engage, because it is built on a spirit of generosity. At its core, networking is all about crafting win-win alliances where both parties provide value. You may think that “networking” can only take place in person, but this is a myth! In fact, most networking takes place from afar, and in some cases, the individuals may never even meet in person. In this webinar, our host Alaina G. Levine discussed strategies and tactics for finding new collaborators and building mutually-beneficial partnerships with professionals across the globe (and perhaps on some exoplanets too!). Let’s network!
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stanford.zoom.us stanford.zoom.us
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A webinar on using video-conferencing software for developmental research exploring options & best practices.
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www.thelancet.com www.thelancet.com
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BackgroundIn countries with declining numbers of confirmed cases of COVID-19, lockdown measures are gradually being lifted. However, even if most physical distancing measures are continued, other public health measures will be needed to control the epidemic. Contact tracing via conventional methods or mobile app technology is central to control strategies during de-escalation of physical distancing. We aimed to identify key factors for a contact tracing strategy to be successful.MethodsWe evaluated the impact of timeliness and completeness in various steps of a contact tracing strategy using a stochastic mathematical model with explicit time delays between time of infection and symptom onset, and between symptom onset, diagnosis by testing, and isolation (testing delay). The model also includes tracing of close contacts (eg, household members) and casual contacts, followed by testing regardless of symptoms and isolation if testing positive, with different tracing delays and coverages. We computed effective reproduction numbers of a contact tracing strategy (RCTS) for a population with physical distancing measures and various scenarios for isolation of index cases and tracing and quarantine of their contacts.FindingsFor the most optimistic scenario (testing and tracing delays of 0 days and tracing coverage of 100%), and assuming that around 40% of transmissions occur before symptom onset, the model predicts that the estimated effective reproduction number of 1·2 (with physical distancing only) will be reduced to 0·8 (95% CI 0·7–0·9) by adding contact tracing. The model also shows that a similar reduction can be achieved when testing and tracing coverage is reduced to 80% (RCTS 0·8, 95% CI 0·7–1·0). A testing delay of more than 1 day requires the tracing delay to be at most 1 day or tracing coverage to be at least 80% to keep RCTS below 1. With a testing delay of 3 days or longer, even the most efficient strategy cannot reach RCTS values below 1. The effect of minimising tracing delay (eg, with app-based technology) declines with decreasing coverage of app use, but app-based tracing alone remains more effective than conventional tracing alone even with 20% coverage, reducing the reproduction number by 17·6% compared with 2·5%. The proportion of onward transmissions per index case that can be prevented depends on testing and tracing delays, and given a 0-day tracing delay, ranges from up to 79·9% with a 0-day testing delay to 41·8% with a 3-day testing delay and 4·9% with a 7-day testing delay.InterpretationIn our model, minimising testing delay had the largest impact on reducing onward transmissions. Optimising testing and tracing coverage and minimising tracing delays, for instance with app-based technology, further enhanced contact tracing effectiveness, with the potential to prevent up to 80% of all transmissions. Access to testing should therefore be optimised, and mobile app technology might reduce delays in the contact tracing process and optimise contact tracing coverage.
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www.thelancet.com www.thelancet.com
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BackgroundThe COVID-19 pandemic has placed unprecedented strain on health-care systems. Frailty is being used in clinical decision making for patients with COVID-19, yet the prevalence and effect of frailty in people with COVID-19 is not known. In the COVID-19 in Older PEople (COPE) study we aimed to establish the prevalence of frailty in patients with COVID-19 who were admitted to hospital and investigate its association with mortality and duration of hospital stay.MethodsThis was an observational cohort study conducted at ten hospitals in the UK and one in Italy. All adults (≥18 years) admitted to participating hospitals with COVID-19 were included. Patients with incomplete hospital records were excluded. The study analysed routinely generated hospital data for patients with COVID-19. Frailty was assessed by specialist COVID-19 teams using the clinical frailty scale (CFS) and patients were grouped according to their score (1–2=fit; 3–4=vulnerable, but not frail; 5–6=initial signs of frailty but with some degree of independence; and 7–9=severe or very severe frailty). The primary outcome was in-hospital mortality (time from hospital admission to mortality and day-7 mortality).FindingsBetween Feb 27, and April 28, 2020, we enrolled 1564 patients with COVID-19. The median age was 74 years (IQR 61–83); 903 (57·7%) were men and 661 (42·3%) were women; 425 (27·2%) had died at data cutoff (April 28, 2020). 772 (49·4%) were classed as frail (CFS 5–8) and 27 (1·7%) were classed as terminally ill (CFS 9). Compared with CFS 1–2, the adjusted hazard ratios for time from hospital admission to death were 1·55 (95% CI 1·00–2·41) for CFS 3–4, 1·83 (1·15–2·91) for CFS 5–6, and 2·39 (1·50–3·81) for CFS 7–9, and adjusted odds ratios for day-7 mortality were 1·22 (95% CI 0·63–2·38) for CFS 3–4, 1·62 (0·81–3·26) for CFS 5–6, and 3·12 (1·56–6·24) for CFS 7–9.InterpretationIn a large population of patients admitted to hospital with COVID-19, disease outcomes were better predicted by frailty than either age or comorbidity. Our results support the use of CFS to inform decision making about medical care in adult patients admitted to hospital with COVID-19.
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www.thelancet.com www.thelancet.com
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BackgroundAlthough mortality due to COVID-19 is, for the most part, robustly tracked, its indirect effect at the population level through lockdown, lifestyle changes, and reorganisation of health-care systems has not been evaluated. We aimed to assess the incidence and outcomes of out-of-hospital cardiac arrest (OHCA) in an urban region during the pandemic, compared with non-pandemic periods.MethodsWe did a population-based, observational study using data for non-traumatic OHCA (N=30 768), systematically collected since May 15, 2011, in Paris and its suburbs, France, using the Paris Fire Brigade database, together with in-hospital data. We evaluated OHCA incidence and outcomes over a 6-week period during the pandemic in adult inhabitants of the study area.FindingsComparing the 521 OHCAs of the pandemic period (March 16 to April 26, 2020) to the mean of the 3052 total of the same weeks in the non-pandemic period (weeks 12–17, 2012–19), the maximum weekly OHCA incidence increased from 13·42 (95% CI 12·77–14·07) to 26·64 (25·72–27·53) per million inhabitants (p<0·0001), before returning to normal in the final weeks of the pandemic period. Although patient demographics did not change substantially during the pandemic compared with the non-pandemic period (mean age 69·7 years [SD 17] vs 68·5 [18], 334 males [64·4%] vs 1826 [59·9%]), there was a higher rate of OHCA at home (460 [90·2%] vs 2336 [76·8%]; p<0·0001), less bystander cardiopulmonary resuscitation (239 [47·8%] vs 1165 [63·9%]; p<0·0001) and shockable rhythm (46 [9·2%] vs 472 [19·1%]; p<0·0001), and longer delays to intervention (median 10·4 min [IQR 8·4–13·8] vs 9·4 min [7·9–12·6]; p<0·0001). The proportion of patients who had an OHCA and were admitted alive decreased from 22·8% to 12·8% (p<0·0001) in the pandemic period. After adjustment for potential confounders, the pandemic period remained significantly associated with lower survival rate at hospital admission (odds ratio 0·36, 95% CI 0·24–0·52; p<0·0001). COVID-19 infection, confirmed or suspected, accounted for approximately a third of the increase in OHCA incidence during the pandemic.InterpretationA transient two-times increase in OHCA incidence, coupled with a reduction in survival, was observed during the specified time period of the pandemic when compared with the equivalent time period in previous years with no pandemic. Although this result might be partly related to COVID-19 infections, indirect effects associated with lockdown and adjustment of health-care services to the pandemic are probable. Therefore, these factors should be taken into account when considering mortality data and public health strategies.
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www.jackiecassell.com www.jackiecassell.com
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The impact of coronavirus on the UK’s 400,000 care home residents has been devastating. In these fragile communities, life is very different for residents and carers. Masks are the norm, visitors banned, and gone are hairdressers, sing-songs, and communal meals.
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This work seeks to compare the number of confirmed cases and deaths caused by COVID-19 among the BRICS member countries using data from Johns Hopkins University. The situation experienced by the BRICS is worrying. Brazil, Russia, India, and South Africa are among the five countries with the highest number of confirmed cases. Special attention should be given to Brazil, which ranks in second place regarding to the number of confirmed cases in the world. In addition, India will have the highest number of infections in March 2021, according to projections of Massachusetts Institute of Technology (MIT).
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www.statista.com www.statista.com
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Global travel restrictions, put in place to curtail the coronavirus pandemic, have had a devastating effect on the tourism industry. Data from the World Travel & Tourism Council, shows which countries stand the most to lose from a downturn in tourism. Mexico is perhaps the most vulnerable, with 15.5% of its GDP relying on the travel and tourism industry. Spain and Italy are also highly vulnerable, owing 14.3% and 13.0% of its GDP to tourism respectively. In the U.S., despite just 8.6% of GDP, the U.S., travel and tourism still jeopardizes 16.8 million jobs.
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www.nber.org www.nber.org
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The largest economic cost of the COVID-19 pandemic could arise from changes in behavior long after the immediate health crisis is resolved. A potential source of such a long-lived change is scarring of beliefs, a persistent change in the perceived probability of an extreme, negative shock in the future. We show how to quantify the extent of such belief changes and determine their impact on future economic outcomes. We find that the long-run costs for the U.S. economy from this channel is many times higher than the estimates of the short-run losses in output. This suggests that, even if a vaccine cures everyone in a year, the Covid-19 crisis will leave its mark on the US economy for many years to come.
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www.nber.org www.nber.org
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South Korea publicly disclosed detailed location information of individuals that tested positive for COVID-19. We quantify the effect of public disclosure on the transmission of the virus and economic losses in Seoul. The change in commuting patterns due to public disclosure lowers the number of cases by 200 thousand and the number of deaths by 7.7 thousand in Seoul over two years. Compared to a city-wide lock-down that results in the same number of cases over two years as the disclosure scenario, the economic cost of such a lockdown is almost four times higher.
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In addition to its impact on public health, COVID-19 has had a major impact on the economy. To shed light on how COVID-19 is affecting small businesses – and on the likely impact of the recent stimulus bill, we conducted a survey of more than 5,800 small businesses. Several main themes emerge from the results. First, mass layoffs and closures have already occurred. In our sample, 43 percent of businesses are temporarily closed, and businesses have – on average – reduced their employee counts by 40 percent relative to January. Second, consistent with previous literature, we find that many small businesses are financially fragile. For example, the median business has more than $10,000 in monthly expenses and less than one month of cash on hand. Third, businesses have widely varying beliefs about the likely duration of COVID related disruptions. Fourth, the majority of businesses planned to seek funding through the CARES act. However, many anticipated problems with accessing the aid, such as bureaucratic hassles and difficulties establishing eligibility.
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www.nber.org www.nber.org
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Not much is obvious about how socioeconomic inequalities impact the spread of infectious diseases once one considers behavioral responses, correlations among multiple covariates and the likely non-linearities and dynamics involved. Social distancing responses to the threat of catching COVID-19 and outcomes for infections and deaths are modelled across US counties, augmenting epidemiological and health covariates with within-county median incomes, poverty and income inequality, and age and racial composition. Systematic socioeconomic effects on social distancing and infections emerge, and most effects do not fade as the virus spreads. Deaths, once infected, are less responsive to socioeconomic covariates. Richer counties tend to see greater gains in social distancing and lower infection rates, controlling for more standard epidemiological factors. Income poverty and inequality tend to increase the infection rate, but these effects are largely accountable to their correlation with racial composition. A more elderly population increases deaths conditional on infections, but has an offsetting effect on the infection rate, consistent with the behavioral responses we find through social distancing.
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www.nber.org www.nber.org
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This note is intended to introduce economists to a simple SIR model of the progression of COVID-19 in the United States over the next 12-18 months. An SIR model is a Markov model of the spread of an epidemic in a population in which the total population is divided into categories of being susceptible to the disease (S), actively infected with the disease (I), and recovered (or dead) and no longer contagious (R). How an epidemic plays out over time is determined by the transition rates between these three states. This model allows for quantitative statements regarding the tradeoff between the severity and timing of suppression of the disease through social distancing and the progression of the disease in the population. Example applications of the model are provided. Special attention is given to the question of if and when the fraction of active infections in the population exceeds 1% (at which point the health system is forecast to be severely challenged) and 10% (which may result in severe staffing shortages for key financial and economic infrastructure) as well as the cumulative burden of the disease over an 18 month horizon.
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Why do we adopt new rules, such as social distancing? While decades of psychology research stresses the importance of social influence on individual behaviour, many COVID-19 campaigns focused on convincing individuals that distancing is the right thing to do. In a global dataset (114 countries, n=6674), we investigated how social influences predict people’s adherence to distancing rules during the pandemic. Analyses showed that people practised distancing more when they thought their close social circle did so; this social influence mattered more than people thinking distancing was the right thing. People’s adherence also aligned with their fellow citizens’, but only if they deeply bonded with their country. Personal vulnerability to the disease predicted distancing more for people with larger social circles. Empathy, collective efficacy and collectivism also significantly predicted distancing. During crises, policymakers can achieve behavioural change by emphasising shared values and harnessing the social influence of close friends and relatives.
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www.nature.com www.nature.com
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While severe social-distancing measures have proven effective in slowing the coronavirus disease 2019 (COVID-19) pandemic, second-wave scenarios are likely to emerge as restrictions are lifted. Here we integrate anonymized, geolocalized mobility data with census and demographic data to build a detailed agent-based model of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) transmission in the Boston metropolitan area. We find that a period of strict social distancing followed by a robust level of testing, contact-tracing and household quarantine could keep the disease within the capacity of the healthcare system while enabling the reopening of economic activities. Our results show that a response system based on enhanced testing and contact tracing can have a major role in relaxing social-distancing interventions in the absence of herd immunity against SARS-CoV-2.
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psyarxiv.com psyarxiv.com
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School closures due to the COVID-19 pandemic have disrupted the education of 91% of students worldwide. As a critical process in supporting young children’s resilience, play is increasingly recognised as a valuable pedagogical strategy within a shifting educational landscape during the pandemic. This study reports on findings from a survey on play in early childhood education of 309 early childhood teachers during primary school closures in Ireland. Eighty-two per cent of teachers recommended play strategies to parents during remote teaching and home schooling and almost all teachers (99%) intended to use play as a pedagogical strategy upon school reopening. Teachers believed play was an especially important pedagogical tool in supporting young children’s social-emotional development, learning and transition back to school. Over a third highlighted uncertainty surrounding capacity to use play upon school reopening given COVID-19 regulations, emphasizing the need for greater guidance to support teachers’ commitment to play-based pedagogical strategies.
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psyarxiv.com psyarxiv.com
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This study investigated the psychological impact of the COVID-19 pandemic in pregnant women from Bosnia and Herzegovina and Serbia during March and April 2020. 152 respondents filled out an online administered questionnaire assessing psychological impact of the COVID-19 pandemic, fear of COVID-19 infection and death, attachment styles, perceived social support and other relevant sociodemographic and life history variables. The results indicate that the COVID-19 pandemic significantly impacts the level of fear and overall psychological functioning of the pregnant women. Especially prone to increased stress reactions are those who have lower partner support, fearful and preoccupied attachment styles, and lower financial status. The results are discussed in terms of the need for a systemic approach to psychological screening for pregnant women. We also point out the need to carefully evaluate the use of the IES-R when applied to assess reactions to collectively experienced prolonged stressful events such as the pandemic.
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www.nber.org www.nber.org
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Firms with greater financial flexibility should be better able to fund a revenue shortfall resulting from the COVID-19 shock and benefit less from policy responses. We find that firms with high financial flexibility experience a stock price drop lower by 26% or 9.7 percentage points than those with low financial flexibility accounting for a firm’s industry. This differential return persists as stock prices rebound. Similar results hold for CDS spreads. The stock price of a firm with an average payout over assets ratio would have dropped 2 percentage points less with no payouts for the last three years.
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Public transit is central to cultivating equitable communities. Meanwhile, the novel coronavirus disease COVID-19 and associated social restrictions has radically transformed ridership behavior in urban areas. Perhaps the most concerning aspect of the COVID-19 pandemic is that low-income and historically marginalized groups are not only the most susceptible to economic shifts but are also most reliant on public transportation. As revenue decreases, transit agencies are tasked with providing adequate public transportation services in an increasingly hostile economic environment. Transit agencies therefore have two primary concerns. First, how has COVID-19 impacted ridership and what is the new post-COVID normal? Second, how has ridership varied spatio-temporally and between socio-economic groups? In this work we provide a data-driven analysis of COVID-19's affect on public transit operations and identify temporal variation in ridership change. We then combine spatial distributions of ridership decline with local economic data to identify variation between socio-economic groups. We find that in Nashville and Chattanooga, TN, fixed-line bus ridership dropped by 66.9% and 65.1% from 2019 baselines before stabilizing at 48.4% and 42.8% declines respectively. The largest declines were during morning and evening commute time. Additionally, there was a significant difference in ridership decline between the highest-income areas and lowest-income areas (77% vs 58%) in Nashville.
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www.nber.org www.nber.org
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We study how the differential timing of local lockdowns due to COVID-19 causally affects households’ spending and macroeconomic expectations at the local level using several waves of a customized survey with more than 10,000 respondents. About 50% of survey participants report income and wealth losses due to the corona virus, with the average losses being $5,293 and $33,482 respectively. Aggregate consumer spending dropped by 31 log percentage points with the largest drops in travel and clothing. We find that households living in counties that went into lockdown earlier expect the unemployment rate over the next twelve months to be 13 percentage points higher and continue to expect higher unemployment at horizons of three to five years. They also expect lower future inflation, report higher uncertainty, expect lower mortgage rates for up to 10 years, and have moved out of foreign stocks into liquid forms of savings. The imposition of lockdowns can account for much of the decline in employment in recent months as well as declines in consumer spending. While lockdowns have pronounced effects on local economic conditions and households’ expectations, they have little impact on approval ratings of Congress, the Fed, or the Treasury but lead to declines in the approval of the President.
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In March of 2020, banks faced the largest increase in liquidity demands ever observed. Firms drew funds on a massive scale from pre-existing credit lines and loan commitments in anticipation of cash flow disruptions from the economic shutdown designed to contain the COVID-19 crisis. The increase in liquidity demands was concentrated at the largest banks, who serve the largest firms. Pre-crisis financial condition did not limit banks’ liquidity supply. Coincident inflows of funds to banks from both the Federal Reserve’s liquidity injection programs and from depositors, along with strong pre-shock bank capital, explain why banks were able to accommodate these liquidity demands.
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www.nber.org www.nber.org
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We study partisan differences in Americans’ response to the COVID-19 pandemic. Political leaders and media outlets on the right and left have sent divergent messages about the severity of the crisis, which could impact the extent to which Republicans and Democrats engage in social distancing and other efforts to reduce disease transmission. We develop a simple model of a pandemic response with heterogeneous agents that clarifies the causes and consequences of heterogeneous responses. We use location data from a large sample of smartphones to show that areas with more Republicans engaged in less social distancing, controlling for other factors including public policies, population density, and local COVID cases and deaths. We then present new survey evidence of significant gaps at the individual level between Republicans and Democrats in self-reported social distancing, beliefs about personal COVID risk, and beliefs about the future severity of the pandemic.
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www.nber.org www.nber.org
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The reproduction number R0 plays an outsized role in COVID-19 risk management. But it is an insufficient statistic, particularly for financial risks, because transmissions are stochastic due to environmental factors. We introduce aggregate transmission shocks into a widely-used epidemic model and link firm valuation to epidemic data by using an asset-pricing framework that accounts for potential vaccines. Pooling early data, we estimate a large R0 and transmission volatility. R0 mismeasures social-distancing benefits because it gives a poor approximation of conditional infection forecasts. R0 mismeasures financial risks since transmission volatility and vaccine news also determine firm-value damage.
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www.nber.org www.nber.org
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We explore the impact of COVID-19 on employee's digital communication patterns through an event study of lockdowns in 16 large metropolitan areas in North America, Europe and the Middle East. Using de- identified, aggregated meeting and email meta-data from 3,143,270 users, we find, compared to pre- pandemic levels, increases in the number of meetings per person (+12.9 percent) and the number of attendees per meeting (+13.5 percent), but decreases in the average length of meetings (-20.1 percent). Collectively, the net effect is that people spent less time in meetings per day (-11.5 percent) in the post- lockdown period. We also find significant and durable increases in length of the average workday (+8.2 percent, or +48.5 minutes), along with short-term increases in email activity. These findings provide insight from a novel dataset into how the nature of work has changed for a large sample of knowledge workers. We discuss these changes in light of the ongoing challenges faced by organizations and workers struggling to adapt and perform in the face of a global pandemic.
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www.nber.org www.nber.org
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Managing the outbreak of COVID-19 in India constitutes an unprecedented health emergency in one of the largest and most diverse nations in the world. On May 4, 2020, India started the process of releasing its population from a national lockdown during which extreme social distancing was implemented. We describe and simulate an adaptive control approach to exit this situation, while maintaining the epidemic under control. Adaptive control is a flexible counter-cyclical policy approach, whereby different areas release from lockdown in potentially different gradual ways, dependent on the local progression of the dis- ease. Because of these features, adaptive control requires the ability to decrease or increase social distancing in response to observed and projected dynamics of the disease outbreak. We show via simulation of a stochastic Susceptible-Infected-Recovered (SIR) model and of a synthetic intervention (SI) model that adaptive control performs at least as well as immediate and full release from lockdown starting May 4 and as full release from lockdown after a month (i.e., after May 31). The key insight is that adaptive response provides the option to increase or decrease socioeconomic activity depending on how it affects disease progression and this freedom allows it to do at least as well as most other policy alternatives. We also discuss the central challenge to any nuanced release policy, including adaptive control, specifically learning how specific policies translate into changes in contact rates and thus COVID-19's reproductive rate in real time.
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www.nber.org www.nber.org
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This study quantifies the effect of state reopening policies on daily mobility, travel, and mixing behavior during the COVID-19 pandemic. We harness cell device signal data to examine the effects of the timing and pace of reopening plans in different states. We quantify the increase in mobility patterns during the reopening phase by a broad range of cell-device-based metrics. Soon (four days) after reopening, we observe a 6% to 8% mobility increase. In addition, we find that temperature and precipitation are strongly associated with increased mobility across counties. The mobility measures that reflect visits to a greater variety of locations responds the most to reopening policies, while total time in vs. outside the house remains unchanged. The largest increases in mobility occur in states that were late adopters of closure measures, suggesting that closure policies may have represented more of a binding constraint in those states. Together, these four observations provide an assessment of the extent to which people in the U.S. are resuming movement and physical proximity as the COVID-19 pandemic continues.
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www.nber.org www.nber.org
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We explore how household consumption responds to epidemics, utilizing transaction-level household financial data to investigate the impact of the COVID-19 virus. As the number of cases grew, households began to radically alter their typical spending across a number of major categories. Initially spending increased sharply, particularly in retail, credit card spending and food items. This was followed by a sharp decrease in overall spending. Households responded most strongly in states with shelter-in-place orders in place by March 29th. We explore heterogeneity across partisan affiliation, demographics and income. Greater levels of social distancing are associated with drops in spending, particularly in restaurants and retail.
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Voluntary social distancing plays a vital role in containing the spread of the disease during a pandemic. As a public good, it should be more commonplace in more homogeneous and altruistic societies. However, for healthy people, observing social distancing has private benefits, too. If sick individuals are more likely to stay home, healthy ones have fewer incentives to do so, especially if the asymptomatic transmission is perceived to be unlikely. Theoretically, we show that this interplay may lead to a stricter observance of social distancing in more diverse and less altruistic societies. Empirically, we find that, consistent with the model, the reduction in mobility following the first local case of COVID-19 was stronger in Russian cities with higher ethnic fractionalization and cities with higher levels of xenophobia. For identification, we predict the timing of the first case using pre-existing patterns of internal migration to Moscow. Using SafeGraph data on mobility patterns, we confirm that mobility reduction in the United States was also higher in counties with higher ethnic fractionalization. Our findings highlight the importance of strategic incentives of different population groups for the effectiveness of public policy.
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www.nber.org www.nber.org
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The U.S. health care system has experienced great pressure since early March 2020 as it pivoted to providing necessary care for COVID-19 patients. But there are signs that non-COVID-19 care use declined during this time period. We examine near real time data from a nationwide electronic healthcare records system that covers over 35 million patients to provide new evidence of how non-COVID-19 acute care and preventive/primary care have been affected during the epidemic. Using event study and difference-in-difference models we find that state closure policies (stay-at-home or non-essential business closures) are associated with large declines in ambulatory visits, with effects differing by type of care. State closure policies reduced overall outpatient visits by about 15-16 percent within two weeks. Outpatient visits for health check-ups and well care experience very large declines during the epidemic, with substantial effects from state closure policies. In contrast, mental health outpatient visits declined less than other care, and appear less affected by state closure policies. We find substitution to telehealth modalities may have played an important role in mitigating the decline in mental health care utilization. Aggregate trends in outpatient visits show a 40% decline after the first week of March 2020, only a portion of which is attributed to state policy. A rebound starts around mid April that does not appear to be explained by state reopening policy. Despite this rebound, care visits still remain below the pre-epidemic levels in most cases.
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We analyze the externalities that arise when social and economic interactions transmit infectious diseases such as COVID-19. Individually rational agents do not internalize that they impose infection externalities upon others when the disease is transmitted. In an SIR model calibrated to capture the main features of COVID-19 in the US economy, we show that private agents perceive the cost an additional infection to be around $80k whereas the social cost including infection externalities is more than three times higher, around $286k. This misvaluation has stark implications for how society ultimately overcomes the disease: for a population of individually rational agents, the precautionary behavior by the susceptible flattens the curve of infections, but the disease is not overcome until herd immunity is acquired. The resulting economic cost is high; an initial sharp decline in aggregate output followed by a slow recovery over several years. By contrast, the socially optimal approach in our model focuses public policy measures on the infected in order to contain the disease and quickly eradicate it, which produces a much milder recession. If targeting the infected is impossible, the optimal policy in our model is still to aggressively contain and eliminate the disease, and the social cost of an extra infection rises to $586k.
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New York City has been rightly characterized as the epicenter of the coronavirus pandemic in the United States. Just one month after the first cases of coronavirus infection were reported in the city, the burden of infected individuals with serious complications of COVID-19 has already outstripped the capacity of many of the city’s hospitals. As in the case of most pandemics, scientists and public officials don’t have complete, accurate, real-time data on the path of new infections. Despite these data inadequacies, there already appears to be sufficient evidence to conclude that the curve in New York City is indeed flattening. The purpose of this report is to set forth the evidence for – and against – this preliminary but potentially important conclusion. Having examined the evidence, we then inquire: if the curve is indeed flattening, do we know what caused to it to level off?
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In the wake of the global pandemic known as COVID-19, retirees, along with those hoping to retire someday, have been shocked into a new awareness of the need for better risk management tools to handle longevity and aging. This paper offers an assessment of the status quo prior to the spread of the coronavirus, evaluates how retirement systems are faring in the wake of the shock. Next we examine insurance and financial market products that may render retirement systems more resilient for the world’s aging population. Finally, potential roles for policymakers are evaluated.
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www.nber.org www.nber.org
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Employment rates in the United States fell dramatically between February 2020 and April 2020 as the repercussions of the COVID-19 pandemic reverberated through the labor market. This paper uses data from the CPS Basic Monthly Files to document that the employment decline was particularly severe for immigrants. Historically, immigrant men were more likely to be employed than native men. The COVID-related labor market disruptions eliminated the immigrant employment advantage. By April 2020, immigrant men had lower employment rates than native men. Part of the relative increase in the immigrant rate of job loss arises because immigrants were less likely to work in jobs that could be performed remotely and suffered disparate employment consequences as the lockdown permitted workers with more “remotable” skills to continue their work from home. Undocumented men were particularly hard hit by the pandemic, with their rate of job loss far exceeding the rate of job loss of legal immigrants.
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COVID-19 antibody tests have imperfect accuracy. There has been lack of clarity on the meaning of reported rates of false positives and false negatives. For risk assessment and clinical decision making, the rates of interest are the positive and negative predictive values of a test. Positive predictive value (PPV) is the chance that a person who tests positive has been infected. Negative predictive value (NPV) is the chance that someone who tests negative has not been infected. The medical literature regularly reports different statistics, sensitivity and specificity. Sensitivity is the chance that an infected person receives a positive test result. Specificity is the chance that a non-infected person receives a negative result. Knowledge of sensitivity and specificity permits one to predict the test result given a person’s true infection status. These predictions are not directly relevant to risk assessment or clinical decisions, where one knows a test result and wants to predict whether a person has been infected. Given estimates of sensitivity and specificity, PPV and NPV can be derived if one knows the prevalence of the disease, the rate of illness in the population. There is considerable uncertainty about the prevalence of COVID-19. This paper addresses the problem of inference on the PPV and NPV of COVID-19 antibody tests given estimates of sensitivity and specificity and credible bounds on prevalence. I explain the methodological problem, show how to estimate bounds on PPV and NPV, and apply the findings to some tests authorized by the FDA.
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www.nber.org www.nber.org
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Social distancing via shelter-in-place strategies has emerged as the most effective way to combat Covid-19. In the United States, choices about such policies are made by individual states. Here we show that the policy choice made by one state influences the incentives that other states face to adopt similar policies: they can be viewed as strategic complements in a supermodular game. If they satisfy the condition of uniform strict increasing differences then following Heal and Kunreuther ([6]) we show that if enough states engage in social distancing, they will tip others to do the same and thus shift the Nash equilibrium with respect to the number of states engaging in social distancing.
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www.nber.org www.nber.org
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As the COVID-19 pandemic progresses, researchers are reporting findings of randomized trials comparing standard care with care augmented by experimental drugs. The trials have small sample sizes, so estimates of treatment effects are imprecise. Seeing imprecision, clinicians reading research articles may find it difficult to decide when to treat patients with experimental drugs. Whatever decision criterion one uses, there is always some probability that random variation in trial outcomes will lead to prescribing sub-optimal treatments. A conventional practice when comparing standard care and an innovation is to choose the innovation only if the estimated treatment effect is positive and statistically significant. This practice defers to standard care as the status quo. To evaluate decision criteria, we use the concept of near optimality, which jointly considers the probability and magnitude of decision errors. An appealing decision criterion from this perspective is the empirical success rule, which chooses the treatment with the highest observed average patient outcome in the trial. Considering the design of recent and ongoing COVID-19 trials, we show that the empirical success rule yields treatment results that are much closer to optimal than those generated by prevailing decision criteria based on hypothesis tests.
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www.nber.org www.nber.org
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Amid the COVID-19 outbreak and related expected economic downturn, many developed and emerging market central banks around the world engaged in new long-term asset purchase programs, or so-called quantitative easing (QE) interventions. This paper conducts an event-study analysis of 24 COVID-19 QE announcements made by 21 global central banks on their local 10-year government bond yields. We find that the average developed market QE announcement had a statistically significant -0.14% 1-day impact, which is slightly smaller than past interventions during the Great Recession era. In contrast, the average impact of emerging market QE announcements was significantly larger, averaging -0.28% and -0.43% over 1-day and 3-day windows, respectively. Across developed and emerging bond markets, we estimate an overall average 1-day impact of -0.23%. We also show that all 10-year government bond yields in our sample rose sharply in mid-March 2020, but fell substantially after the period of QE announcements that we study in the paper.
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www.nber.org www.nber.org
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We use job vacancy data collected in real time by Burning Glass Technologies, as well as initial unemployment insurance (UI) claims data to study the impact of COVID-19 on the labor market. Our data allow us to track postings at disaggregated geography and by detailed occupation and industry. We find that job vacancies collapsed in the second half of March and are now 30% lower than their level at the beginning of the year. To a first approximation, this collapse was broad based, hitting all U.S. states, regardless of the intensity of the initial virus spread or timing of stay-at-home policies. UI claims also largely match these patterns. Nearly all industries and occupations saw contraction in postings and spikes in UI claims, regardless of whether they are deemed essential and whether they have work-from-home capability. The only major exceptions are in essential retail and nursing, the “front line” jobs most in-demand during the current crisis.
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www.nber.org www.nber.org
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The collapse of economic activity in 2020 from COVID-19 has been immense. An important question is how much of that resulted from government restrictions on activity versus people voluntarily choosing to stay home to avoid infection. This paper examines the drivers of the collapse using cellular phone records data on customer visits to more than 2.25 million individual businesses across 110 different industries. Comparing consumer behavior within the same commuting zones but across boundaries with different policy regimes suggests that legal shutdown orders account for only a modest share of the decline of economic activity (and that having county-level policy data is significantly more accurate than state-level data). While overall consumer traffic fell by 60 percentage points, legal restrictions explain only 7 of that. Individual choices were far more important and seem tied to fears of infection. Traffic started dropping before the legal orders were in place; was highly tied to the number of COVID deaths in the county; and showed a clear shift by consumers away from larger/busier stores toward smaller/less busy ones in the same industry. States repealing their shutdown orders saw identically modest recoveries--symmetric going down and coming back. The shutdown orders did, however, have significantly reallocate consumer activity away from “nonessential” to “essential” businesses and from restaurants and bars toward groceries and other food sellers.
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Violence against women is a problem worldwide, with economic costs ranging from 1-4% of global GDP. Using variation in the intensity of government-mandated lockdowns in India, we show that domestic violence complaints increase by 0.47 SD in districts with the strictest lockdown rules. We find similarly large increases in cybercrime complaints. Interestingly, rape and sexual assault complaints decrease 0.4 SD during the same period in districts with the strictest lockdowns, consistent with decreased female mobility in public spaces, public transport, and workplaces. Attitudes toward domestic violence play an important role in the reporting and incidence of domestic violence during the lockdown.
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www.nber.org www.nber.org
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In the midst of epidemics such as COVID-19, therapeutic candidates are unlikely to be able to complete the usual multiyear clinical trial and regulatory approval process within the course of an outbreak. We apply a Bayesian adaptive patient-centered model—which minimizes the expected harm of false positives and false negatives—to optimize the clinical trial development path during such outbreaks. When the epidemic is more infectious and fatal, the Bayesian-optimal sample size in the clinical trial is lower and the optimal statistical significance level is higher. For COVID-19 (assuming a static R0 – 2 and initial infection percentage of 0.1%), the optimal significance level is 7.1% for a clinical trial of a nonvaccine anti-infective therapeutic and 13.6% for that of a vaccine. For a dynamic R0 decreasing from 3 to 1.5, the corresponding values are 14.4% and 26.4%, respectively. Our results illustrate the importance of adapting the clinical trial design and the regulatory approval process to the specific parameters and stage of the epidemic.
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www.nber.org www.nber.org
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We quantify the causal impact of human mobility restrictions, particularly the lockdown of the city of Wuhan on January 23, 2020, on the containment and delay of the spread of the Novel Coronavirus (2019-nCoV). We employ a set of difference-in-differences (DID) estimations to disentangle the lockdown effect on human mobility reductions from other confounding effects including panic effect, virus effect, and the Spring Festival effect. We find that the lockdown of Wuhan reduced inflow into Wuhan by 76.64%, outflows from Wuhan by 56.35%, and within-Wuhan movements by 54.15%. We also estimate the dynamic effects of up to 22 lagged population inflows from Wuhan and other Hubei cities, the epicenter of the 2019-nCoV outbreak, on the destination cities' new infection cases. We find, using simulations with these estimates, that the lockdown of the city of Wuhan on January 23, 2020 contributed significantly to reducing the total infection cases outside of Wuhan, even with the social distancing measures later imposed by other cities. We find that the COVID-19 cases would be 64.81% higher in the 347 Chinese cities outside Hubei province, and 52.64% higher in the 16 non-Wuhan cities inside Hubei, in the counterfactual world in which the city of Wuhan were not locked down from January 23, 2020. We also find that there were substantial undocumented infection cases in the early days of the 2019-nCoV outbreak in Wuhan and other cities of Hubei province, but over time, the gap between the officially reported cases and our estimated “actual” cases narrows significantly. We also find evidence that enhanced social distancing policies in the 63 Chinese cities outside Hubei province are effective in reducing the impact of population inflows from the epicenter cities in Hubei province on the spread of 2019-nCoV virus in the destination cities elsewhere.
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