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

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  • Roland Pongou
  • Guy Tchuente
  • Jean-Baptiste Tondji

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.

Suggested Citation

  • Roland Pongou & Guy Tchuente & Jean-Baptiste Tondji, 2022. "Laissez-Faire, Social Networks, and Race in a Pandemic," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 325-329, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:325-29
    DOI: 10.1257/pandp.20221116
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    Cited by:

    1. Pongou, Roland & Sidie, Ghislain Junior & Tchuente, Guy & Tondji, Jean-Baptiste, 2022. "Profits, Pandemics, and Lockdown Effectiveness in Nursing Home Networks," GLO Discussion Paper Series 1131, Global Labor Organization (GLO).
    2. Roland Pongou & Guy Tchuente & Jean-Baptiste Tondji, 2023. "Optimal interventions in networks during a pandemic," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 847-883, April.

    More about this item

    JEL classification:

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

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