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

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

doi:10.1111/sjoe.12470

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

Helsinki GSE, Helsinki

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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 language	English
Peer-reviewed scientific journal	Scandinavian Journal of Economics
Volume	124
Issue number	2
Pages (from-to)	340-362
Number of pages	23
ISSN	0347-0520
DOIs	https://doi.org/10.1111/sjoe.12470
Publication status	Published - 2022
MoE publication type	A1 Journal article - refereed

Keywords

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

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title = "The impact of stay-at-home policies on individual welfare",

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.",

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author = "Ola Andersson and Pol Campos-Mercade and Fredrik Carlsson and Schneider, {Florian H.} and Erik Wengstr{\"o}m",

note = "Funding Information: The authors declare that they have no conflicts of interest. P. Campos‐Mercade acknowledges funding from the Danish National Research Foundation grant DNRF134 (CEBI). F. Schneider acknowledges funding from the Swiss National Science Foundation grant 100018_185176. We thank three anonymous referees for helpful comments. We are grateful for financial support from and . Riksbankens Jubileumsfond Handelsbankens forskningsstiftelse Publisher Copyright: {\textcopyright} 2021 The Authors. The Scandinavian Journal of Economics published by John Wiley & Sons Ltd on behalf of F{\"o}reningen f{\"o}r utgivande av the SJE.",

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AU - Wengström, Erik

N1 - Funding Information: The authors declare that they have no conflicts of interest. P. Campos‐Mercade acknowledges funding from the Danish National Research Foundation grant DNRF134 (CEBI). F. Schneider acknowledges funding from the Swiss National Science Foundation grant 100018_185176. We thank three anonymous referees for helpful comments. We are grateful for financial support from and . Riksbankens Jubileumsfond Handelsbankens forskningsstiftelse Publisher Copyright: © 2021 The Authors. The Scandinavian Journal of Economics published by John Wiley & Sons Ltd on behalf of Föreningen för utgivande av the SJE.

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

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Keywords

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