The Individual Welfare Costs of Stay-At-Home Policies

Ola Andersson, Pol Campos-Mercade, Fredrik Carlsson, Florian Schneider, Erik Wengström

Research output: Working paper/PreprintWorking paper

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Abstract

This paper reports the results of a choice experiment designed to estimate the private welfare costs of stay-at-home policies during the COVID-19 pandemic. The study is conducted on a large and representative sample of the Swedish population. The results suggest that the welfare cost of a one-month stay-at-home policy, restricting non-working hours away from home, amounts to 9.1 percent of Sweden's monthly GDP. The cost can be interpreted as 29,600 quality-adjusted life years (QALYs), which roughly corresponds to between 3,700 and 8,000 COVID-19 fatalities. Moreover, we find that stricter and longer lockdowns are disproportionately more costly than more lenient ones. This result indicates that strict stay-at-home policies are likely to be cost-effective only if they slow the spread of the disease much more than more lenient ones.
Original languageEnglish
Number of pages43
Publication statusPublished - 2020 May 25

Publication series

NameWorking Papers
PublisherLund University, Department of Economics
No.2020:9

Subject classification (UKÄ)

  • Economics

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