Government Policies and Personal Decisions - Substitutes or Complements?
8 Pages Posted: 22 Mar 2021
Date Written: March 22, 2021
In response to the spread of the COVID-19 pandemic, governments implement containment policies to restrict people's activities. It raises the question of whether these policies are necessary and strict enough. Using two datasets, a national survey in the United States and a government response tracker, I show that lockdown substitutes for self-protection measures when there is no labour uncertainty. However, when the labour uncertainty is prevalent, lockdown and self-protection are complements.
Keywords: COVID-19; Lockdown; Self-protection measures; Labour uncertainty
JEL Classification: I12, I18, D15, D83, D90
Suggested Citation: Suggested Citation