The Effect of Control Measures on COVID-19 Transmission and Work Resumption: International Evidence

38 Pages Posted: 30 Jul 2020

See all articles by Lina Meng

Lina Meng

Xiamen University

Yinggang Zhou

Xiamen University - Department of Finance

Ruige Zhang

Xiamen University

Zhen (Peter) Ye

Coventry University London; The University of Chicago Booth School of Business

Senmao Xia

Coventry University - School of Strategy and Leadership

Giovanni Cerulli

National Research Council (CNR)

Carter Casady

Stanford University - Global Projects Center

Wolfgang K. Härdle

Blockchain Research Center; Xiamen University - Wang Yanan Institute for Studies in Economics (WISE); Charles University; National Yang Ming Chiao Tung University; Humboldt University of Berlin - Center for Applied Statistics and Economics (CASE)

Date Written: May 21, 2020

Abstract

Many countries have taken non-pharmaceutical interventions (NPIs) to contain the spread of the coronavirus (COVID-19) and push the recovery of national economies. This paper investigates the effect of these control measures by comparing five selected countries, China, Italy, Germany, the United Kingdom, and the United States. There is evidence that the degree of early intervention and efficacy of control measures are essential to contain the pandemic. China stands out because its early and strictly enforced interventions are effective to contain the virus spread. Furthermore, we quantify the causal effect of different control measures on COVID-19 transmission and work resumption in China. Surprisingly, digital contact tracing and delegating clear responsibility to the local community appear to be the two most effective policy measures for disease containment and work resumption. Public information campaigns and social distancing also help to flatten the peak significantly. Moreover, material logistics that prevent medical supply shortages provide an additional conditioning factor for disease containment and work resumption. Fiscal policy, however, is less effective at the early to middle stage of the pandemic.

Note: Funding: Received financial supports from the National Natural Science Foundation of China (71871195, and 71988101), Chinese National Social Science Foundation (19ZDA060), and the Humanities and Social Sciences grant of the Chinese Ministry of Education (18YJA790121). Wolfgang Karl Hӓrdle acknowledge financial supports from Grant CAS: XDA 23020303 and DFG IRTG 1792.

Declaration of Interest: None to declare

Keywords: COVID-19, coronavirus

JEL Classification: C00

Suggested Citation

Meng, Lina and Zhou, Yinggang and Zhang, Ruige and Ye, Zhen (Peter) and Xia, Senmao and Cerulli, Giovanni and Casady, Carter and Härdle, Wolfgang K., The Effect of Control Measures on COVID-19 Transmission and Work Resumption: International Evidence (May 21, 2020). Available at SSRN: https://ssrn.com/abstract=3656307 or http://dx.doi.org/10.2139/ssrn.3656307

Lina Meng

Xiamen University ( email )

Xiamen, Fujian 361005
China

Yinggang Zhou (Contact Author)

Xiamen University - Department of Finance ( email )

Xiamen, Fujian 361005
China

Ruige Zhang

Xiamen University ( email )

Xiamen, Fujian 361005
China

Zhen (Peter) Ye

Coventry University London ( email )

University House
109-117 Middlesex Street
London, E1 7JF
United Kingdom
+44(0)2072473666 (Phone)
+44(0)2076574346 (Fax)

HOME PAGE: http://www.peteye.eu

The University of Chicago Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Senmao Xia

Coventry University - School of Strategy and Leadership ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom

Giovanni Cerulli

National Research Council (CNR)

Bologna
Italy

Carter Casady

Stanford University - Global Projects Center ( email )

United States

Wolfgang K. Härdle

Blockchain Research Center ( email )

Unter den Linden 6
Berlin, D-10099
Germany

Xiamen University - Wang Yanan Institute for Studies in Economics (WISE) ( email )

A 307, Economics Building
Xiamen, Fujian 10246
China

Charles University ( email )

Celetná 13
Dept Math Physics
Praha 1, 116 36
Czech Republic

National Yang Ming Chiao Tung University ( email )

No. 1001, Daxue Rd. East Dist.
Hsinchu City 300093
Taiwan

Humboldt University of Berlin - Center for Applied Statistics and Economics (CASE)

Unter den Linden 6
Berlin, D-10099
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
64
Abstract Views
1,601
rank
457,927
PlumX Metrics