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Andersson, Ola
Campos-Mercade, Pol
Carlsson, Fredrik
Schneider, Florian
Wengström, Erik
Year of Publication: 
Series/Report no.: 
Working Paper No. 2020:9
Lund University, School of Economics and Management, Department of Economics, Lund
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.
Stay-at-home orders
welfare effects
choice experiment
Document Type: 
Working Paper

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