Policy Responses, Social Norms, and Behavior Change in the Time of Covid-19

Amira El-Shal () and Eman Eman Moustafa ()
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Amira El-Shal: Cairo University
Eman Eman Moustafa: General Authority for Investment & Free Zones

No 1496, Working Papers from Economic Research Forum

Abstract: Inducing behavior change is a missing factor in the face of viral threats. Using a difference-indifferences fixed-effects strategy, we estimate the effects of government containment, closure, and economic policy responses to COVID-19 on changes in human mobility behavior in 132 countries, while accounting for the disease risk and the public perception of this risk. We also show how social norms, namely risk taking, patience, and trust, can explain the heterogenous effects of policy responses on behavior change. Our estimates indicate that the stringency of containment and closure policies decreases human mobility. Economic policies lead to a less significant decline. Stronger adjustment in the public mobility behavior originates from their risk perception rather than being policy induced. Examining behavioral heterogeneity, we find that risk averse populations and who exhibit more patience pre act and lower their mobility independent of public policies. Economic support triggers negative behavior change in high time-preference settings, where we observe increased mobility, contrary to where populations are more patient. Risk communication elicits positive behavior change among risk-averse and impatient populations, who reduced their mobility. This effect varies by trust in politicians.

Pages: 40
Date: 2021-10-20, Revised 2021-10-20
New Economics Papers: this item is included in nep-cbe and nep-soc
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Published by The Economic Research Forum (ERF)

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