Fearonomics

COVID-19 has had a disastrous effect on the economy. While some portion of the economic effect is people becoming ill, much of the effect is due to individuals changing behavior to avoid contracting the disease. For instance, people are much less likely to go shopping, eat at restaurants, and travel. These latter effects are termed…

How much extra COVID-19 risk would you be willing to accept to open the economy?

That is the basic question that Reed et al. (2020) attempt to answer in their recent paper. The approach they use is as follows: We designed a discrete-choice experiment to administer 10 choice questions to each respondent representing experimentally controlled pairs of scenarios defined by when nonessential businesses could reopen (May, July, or October 2020),…