Economic Implications of State-Wide COVID-19 Response Aggressiveness

Foltice, Bryan and Parker, Michael Edward (2022) "Economic Implications of State-Wide COVID-19 Response Aggressiveness," Journal of Vincentian Social Action: Vol. 6: Iss. 2, Article 5.

16 Pages Posted: 26 May 2022 Last revised: 15 May 2023

See all articles by Bryan Foltice

Bryan Foltice

Butler University - Lacy School of Business

Michael Parker

Butler University

Date Written: March 17, 2022

Abstract

This paper aims to evaluate how the aggressiveness of each state’s response to the COVID-19 pandemic affected their respective economies from Q2, 2020 through Q2, 2021. In our study, we utilize the scale developed by McCann (2020, 2021), which ranks the least aggressive state response to the most aggressive state response at three different points of the pandemic. Through this methodology, test the impact of the aggressiveness of each state governments’ response with the resulting economic impact within that state. Namely, we examine how this level of response affected each state’s unemployment rate, gross domestic product growth, and taxable sales growth of 27 various industries. In our analysis, we find that there was a significantly negative impact between each states response aggression and unemployment rates, GDP growth, and taxable sales for a sizable percentage of the analyzed industries. These results appear to remain consistent when we both analyze the instant quarterly impact of the restrictions imposed on a state, and when we factor in a quarter lag for each state’s response.

Suggested Citation

Foltice, Bryan and Parker, Michael, Economic Implications of State-Wide COVID-19 Response Aggressiveness (March 17, 2022). Foltice, Bryan and Parker, Michael Edward (2022) "Economic Implications of State-Wide COVID-19 Response Aggressiveness," Journal of Vincentian Social Action: Vol. 6: Iss. 2, Article 5., Available at SSRN: https://ssrn.com/abstract=4112277 or http://dx.doi.org/10.2139/ssrn.4112277

Bryan Foltice (Contact Author)

Butler University - Lacy School of Business ( email )

Indianapolis, IN 46208
United States

Michael Parker

Butler University ( email )

4600 Sunset Avenue
Indianapolis, IN 46208
United States

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