Risk perceptions and politics: Evidence from the COVID-19 pandemic

John Barrios and Yael V. Hochberg

Journal of Financial Economics, 2021, vol. 142, issue 2, 862-879

Abstract: Politics may color interpretations of facts, and thus perceptions of risk. We find that a higher share of Trump voters in a county is associated with lower perceptions of risk during the COVID-19 pandemic. Controlling for COVID-19 case counts and deaths, as Trump's vote share rises in the local area, individuals search less for information on the virus and its potential economic impacts, and engage in fewer visits to non-essential businesses. Our results suggest that politics and the media may play an important role in determining the formation of risk perceptions, and may therefore affect both economic and health-related reactions to unanticipated health crises.

Keywords: Risk perceptions; Expectations; COVID-19; Political partisanship; Polarization; Pandemics; Social distancing and compliance (search for similar items in EconPapers)
JEL-codes: D8 I1 L82 P16 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:142:y:2021:i:2:p:862-879

DOI: 10.1016/j.jfineco.2021.05.039

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