Lockdown compliance and income distribution
Gitmez and al. develop a simple model of compliance with government orders during a pandemic. Their main assumptions are that compliance is costly, the costs of non-compliance are heterogeneous and depend on others’ compliance behavior, and the information that agents choose to consume matters. They find that:
- The share of complying individuals is increasing in average income;
- Income influences preferences over the level of enforcement of social distancing such as use of fines and arrests to deter non-compliance;
- Individuals for whom non-compliance is economically beneficial on the margin have a preference for information sources that downplay the severity of the pandemic threat.
Political Economy of Shelter-in-Place Compliance
Authors: Arda Gitmez, Konstantin Sonin, Austin L. Wright
From: University of Chicago, Bilkent University
