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  4. May 2022
  5. Laissez-Faire, Social Networks, and Race in a Pandemic

Laissez-Faire, Social Networks, and Race in a Pandemic

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Abstract

We study the effects of race, network centrality, and policies that tolerate some level of virus spread (laissez-faire) on COVID-19 deaths in nursing homes in the United States. Our analysis uses unique data on nursing home networks and calibration-based estimates of states' preferences for health relative to short-term economic gains. Our findings suggest that laissez-faire policies increase deaths. Nursing homes with a larger share of Black residents experience more deaths, but they are less vulnerable to laissez-faire policies, especially when not central in social networks. Our findings highlight significant interactions between COVID-19 policies, race, and network structure among US seniors.

Citation

Pongou, Roland, Guy Tchuente, and Jean-Baptiste Tondji. 2022. "Laissez-Faire, Social Networks, and Race in a Pandemic." AEA Papers and Proceedings, 112: 325-29. DOI: 10.1257/pandp.20221116

Additional Materials

JEL Classification

  • H75 State and Local Government: Health; Education; Welfare; Public Pensions
  • I12 Health Behavior
  • I18 Health: Government Policy; Regulation; Public Health
  • J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
  • J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • L84 Personal, Professional, and Business Services