The impact of stay-at-home policies on individual welfare

Ola Andersson, Pol Campos-Mercade*, Fredrik Carlsson, Florian H. Schneider, Erik Wengström

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

4 Citations (Scopus)

Abstract

In this paper, we perform a choice experiment assessing the impact of stay-at-home policies on individual welfare. We estimate the willingness to accept compensation (WTA) for restricting non-working hours in Sweden during the COVID-19 pandemic. The WTA for a one-month stay-at-home policy is about US$480 per person, or 9.1 percent of Sweden's monthly per capita GDP. Stricter lockdowns require disproportionately higher compensation than more lenient ones, indicating that strict policies are cost-effective only if they are much more successful in slowing the spread of the disease. Moreover, older people have a higher WTA of staying home than the rest of the population.

Original languageEnglish
Peer-reviewed scientific journalScandinavian Journal of Economics
Volume124
Issue number2
Pages (from-to)340-362
Number of pages23
ISSN0347-0520
DOIs
Publication statusPublished - 2022
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Choice experiment
  • individual welfare effects
  • mental distress
  • stay-at-home orders

Fingerprint

Dive into the research topics of 'The impact of stay-at-home policies on individual welfare'. Together they form a unique fingerprint.

Cite this