Pandemic exposure and long‐run psychological well‐being

Using individuals' life history information from a large‐scale national survey (N = 13,044), we causally evaluate how exposure to SARS‐Cov‐1, the first global pandemic in the 21st century, affects long‐term psychological well‐being. We find that exposure to local pandemic risk, that is, local deaths due to the pandemic, significantly reduced people's mental health 12 years later. Consistent with the belief‐based account of depression, exposure to pandemic risk resulted in more pessimistic beliefs about the future and survival probability. People reduced savings and increased hedonic consumption, suggesting a “carpe diem” effect of the pandemic exposure.