The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.

We analyze the trade-offs between health and the economy during the period of social distancing in São Paulo, the state hardest hit by the COVID-19 pandemic in Brazil. We use longitudinal data with municipal-level information and check the robustness of our estimates to several sources of bias, incl...

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Main Authors: Alexandre Gori Maia, Leticia Marteleto, Cristina Guimarães Rodrigues, Luiz Gustavo Sereno
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2021-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0245011
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author Alexandre Gori Maia
Leticia Marteleto
Cristina Guimarães Rodrigues
Luiz Gustavo Sereno
author_facet Alexandre Gori Maia
Leticia Marteleto
Cristina Guimarães Rodrigues
Luiz Gustavo Sereno
author_sort Alexandre Gori Maia
collection DOAJ
description We analyze the trade-offs between health and the economy during the period of social distancing in São Paulo, the state hardest hit by the COVID-19 pandemic in Brazil. We use longitudinal data with municipal-level information and check the robustness of our estimates to several sources of bias, including spatial dependence, reverse causality, and time-variant omitted variables. We use exogenous climate shocks as instruments for social distancing since people are more likely to stay home in wetter and colder periods. Our findings suggest that the health benefits of social distancing differ by levels of municipal development and may have vanished if the COVID-19 spread was not controlled in neighboring municipalities. In turn, we did not find evidence that municipalities with tougher social distancing performed worse economically. Our results also highlight that estimates that do not account for endogeneity may largely underestimate the benefits of social distancing on reducing the spread of COVID-19.
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spelling doaj.art-993551115744465c87b4279a9548ba4a2022-12-21T18:27:12ZengPublic Library of Science (PLoS)PLoS ONE1932-62032021-01-01162e024501110.1371/journal.pone.0245011The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.Alexandre Gori MaiaLeticia MarteletoCristina Guimarães RodriguesLuiz Gustavo SerenoWe analyze the trade-offs between health and the economy during the period of social distancing in São Paulo, the state hardest hit by the COVID-19 pandemic in Brazil. We use longitudinal data with municipal-level information and check the robustness of our estimates to several sources of bias, including spatial dependence, reverse causality, and time-variant omitted variables. We use exogenous climate shocks as instruments for social distancing since people are more likely to stay home in wetter and colder periods. Our findings suggest that the health benefits of social distancing differ by levels of municipal development and may have vanished if the COVID-19 spread was not controlled in neighboring municipalities. In turn, we did not find evidence that municipalities with tougher social distancing performed worse economically. Our results also highlight that estimates that do not account for endogeneity may largely underestimate the benefits of social distancing on reducing the spread of COVID-19.https://doi.org/10.1371/journal.pone.0245011
spellingShingle Alexandre Gori Maia
Leticia Marteleto
Cristina Guimarães Rodrigues
Luiz Gustavo Sereno
The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.
PLoS ONE
title The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.
title_full The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.
title_fullStr The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.
title_full_unstemmed The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.
title_short The short-term impacts of coronavirus quarantine in São Paulo: The health-economy trade-offs.
title_sort short term impacts of coronavirus quarantine in sao paulo the health economy trade offs
url https://doi.org/10.1371/journal.pone.0245011
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