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Government Mandated Lockdowns Do Not Reduce Covid-19 Deaths: Implications for Evaluating the Stringent New Zealand Response

John Gibson

Working Papers in Economics from University of Waikato

Abstract: The New Zealand policy response to Coronavirus (Covid-19) was the most stringent in the world during the Level 4 lockdown. At least ten billion New Zealand dollars of output (around 3.3% of GDP) were lost then, compared to staying at Level 2. For lockdown to be optimal requires large health benefits to offset these output losses. Forecast deaths from epidemiological models are not valid counterfactuals, due to poor identification. Instead, I use empirical data, based on variation amongst United States counties, over one-fifth of which just had social distancing rather than lockdown. Political drivers of lockdown provide identification. Lockdowns do not reduce Covid-19 deaths. This pattern is visible on each date that key lockdown decisions were made in New Zealand. The ineffectiveness of lockdowns implies New Zealand suffered large economic costs for little benefit in terms of lives saved.

Keywords: Covid-19; deaths; impact evaluation; lockdown; response stringency; New Zealand (search for similar items in EconPapers)
JEL-codes: C21 I18 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2020-06-03
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (6)

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Journal Article: Government mandated lockdowns do not reduce Covid-19 deaths: implications for evaluating the stringent New Zealand response (2022) Downloads
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