Raymond M. Duch (Nuffield College, University of Oxford) will present the paper “Economic Beliefs and the Local Coronavirus Pandemic” (joint with Peiran Jiao (Department of Finance, School of Business and Economics, Maastricht University)).
NES Center for the Study of Diversity and Social Interactions and HSE International Center for the Study of Institutions and Development are happy to invite you to our joint meeting of the Research Seminar on Diversity and Development and HSE Seminar on Political Economy.
Raymond M. Duch (Nuffield College, University of Oxford) will present the paper “Economic Beliefs and the Local Coronavirus Pandemic” (joint with Peiran Jiao (Department of Finance, School of Business and Economics, Maastricht University)).
Registration: till 4 p.m. of October 13, link to video-conference will be sent up to 5 p.m.
Abstract:
We conducted online survey experiments with approximately 1500 subjects in China, 800 in Chile, and 800 in Italy. Our online field experiments measured the economic preferences and beliefs of subjects residing in communities with exposure to different levels of COVID-19 infections. Individuals experience quite different local variations in the intensity of COVID-19 infections and deaths. The perceived intensity of the COVID-19 pandemic is correlated with these local variations in intensity – individuals recognize whether they are in a high versus low intensity community. Respondents condition their behavior on this intensity – levels of COVID-19 preventive behavior are correlated with the intensity of community infections. There is evidence that community infection rates affect beliefs about personal health and quality of life. Exposure to intense community infection rates has limited impact on belief updating in the health domain. Anxiety about the overall national economy is uncorrelated with community infection rates; while, concerns about the local economy and personal financial situation are correlated with local infections. And finally, we find that community exposure to intense infection rates increases risk aversion, promotes patience, and encourages positive reciprocity.