Munich Personal RePEc Archive

COVID-19 with stigma: Theory and evidence from mobility data

Katafuchi, Yuya and Kurita, Kenichi and Managi, Shunsuke (2020): COVID-19 with stigma: Theory and evidence from mobility data. Forthcoming in: Economics of Disasters and Climate Change

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Abstract

This study conducts both theoretical and empirical analyses of how the non-legally-binding policies originating from COVID-19 affect people's going-out behavior. The theoretical analysis assumes that under a declared state of emergency, the individual going out suffers psychological costs arising from both the risk of infection and the stigma of going out. Our hypothesis is derived that under a declared state of emergency, going out entails a strong psychological cost, and people refrain from going out. Then, this study estimates the model using regional mobility data and emergency declarations data to analyze self-restraint behavior under a non-legally binding emergency declaration. The results show that, compared with the pre-declaration of the state of emergency, going-out behavior under and after lifting of the state of emergency was suppressed even when the going-out behavior did not result in penalties, which is consistent with the theoretical analysis.

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