Does individual behavior converge to policy recommendations in times of pandemic? Evidence from COVID-19 in US states
Robert Sonora and
Martina Gottwald-Belinić ()
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Martina Gottwald-Belinić: Faculty of Economics and Business, University of Zagreb
No 2304, EFZG Working Papers Series from Faculty of Economics and Business, University of Zagreb
The COVID-19 pandemic is an exceptional shock on human habitual behavior and provides a rare opportunity to analyze resilience in preferences. We use Google's mobility and policy stringency indices to investigate if policy maker and resident „preferences" align over the period. Differences in utility across the ten largest states in the United States should lead to idiosyncratic response on perceived cost of restrictions and associated risk attitudes in policy respond. We conduct structural break and rolling unit root tests on estimated residual. Our results suggest that individual behavior converges to the policy prescriptions within the time span up to 18 months.
Keywords: COVID-19; individual risk behavior; structural break; unit root tests (search for similar items in EconPapers)
JEL-codes: C22 E70 H75 I12 I18 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:zag:wpaper:2304
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