Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315608 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Risk and Uncertainty [ISSN:] 1573-0476 [Volume:] 68 [Issue:] 1 [Publisher:] Springer US [Place:] New York, NY [Year:] 2024 [Pages:] 25-49
Publisher: 
Springer US, New York, NY
Abstract: 
We assess whether the COVID-19 vaccine induces COVID-19 risky behavior (e.g., going to bars and restaurants) and thus reduces vaccine efficacy. A key empirical challenge is the endogeneity bias when comparing risk-taking by vaccination status since people choose whether to get vaccinated. To address this bias, we exploit rich survey panel data on individuals followed before and after vaccine availability over fourteen months in an event study fixed effects model with individual, time, sector, and county-by-time fixed effects and inverse propensity weights. We find evidence that vaccinated persons, regardless of the timing of vaccination, increase their risk-taking activities. The evidence is consistent with the “lulling effect”. While vaccine availability may reduce the risk of contracting COVID-19, it also contributes to further spread of the virus by incentivizing risk-taking in the short term.
Subjects: 
COVID-19
Risk-taking
Vaccine
Lulling effect
JEL: 
I1
I12
I13
I18
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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