COVID-19 with Stigma: Theory and Evidence from Mobility Data

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COVID-19 with Stigma: Theory and Evidence from Mobility Data Yuya Katafuchi1 · Kenichi Kurita2 · Shunsuke Managi2 Received: 5 August 2020 / Accepted: 31 August 2020 / © Springer Nature Switzerland AG 2020

Abstract This study conducts both theoretical and empirical analyses of how non-legally-binding COVID-19 policies 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 states that under a declared state of emergency people refrain from going out because it entails a strong psychological cost. Then, this study estimates a 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 before the declaration of the state of emergency, going-out behavior was suppressed under the state of emergency and after it was lifted even when going out did not result in penalties, which is consistent with the theoretical analysis. Keywords COVID-19 · Stigma · Self-restraint behavior · Non-legally binding policy · Regional mobility This article is part of the Topical Collection on Economics of COVID-19 The authors acknowledge the support from JSPS KAKENHI grant numbers JP19K23194 and JP20K13486, and of Feasibility Project 14200138 of Research Institute for Humanity and Nature. We should like to thank editors of Economics of Disasters and Climate Change as well as anonymous reviewers. We also appreciate valuable comments from Keisuke Hattori, Kosuke Hirose, and Jumpei Hamamura.  Yuya Katafuchi

[email protected] Kenichi Kurita [email protected] Shunsuke Managi [email protected] 1

Research Institute for Humanity and Nature, 457-4 Motoyama, Kamigamo, Kita-ku, Kyoto 603-8047 Japan

2

Urban Institute and Department of Civil Engineering, School of Engineering, Kyushu University, 744 Motooka, Nishi-ku, Fukuoka 819-0395 Japan

Economics of Disasters and Climate Change

Introduction The coronavirus disease of 2019 (COVID-19) has become a global pandemic that has infected more than 21 million people worldwide as of August 16, 2020 (WHO 2020). To reduce its spread, countries around the world have adopted a variety of policies. In particular, strong policy measures to reduce infection have been implemented to restrict people’s activities, especially their ability to go out, in an effort to reduce their chances of contact. Other policies have also been applied globally to protect people, such as social distancing, stay home, school closure, and protection measures at ports and airports. Yoo and Managi (2020) argue that such policies against COVID-19 will save lives and consequently minimize economic losses. Furthermore, Nakamura and Managi (2020) show that reducing air travel decreases the risk of the import and export of goods. Policies that restrict behavior with the aim of preventing the sp