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The effect of non-pharmaceutical interventions on the demand for health care and on mortality: evidence from COVID-19 in Scandinavia

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  • Steffen Juranek

    (NHH Norwegian School of Economics)

  • Floris T. Zoutman

    (NHH Norwegian School of Economics AND NOCET and CESifo)

Abstract

We study the effectiveness of non-pharmaceutical interventions (NPIs) against COVID-19 on the allocation of scarce resources in the hospital sector in Scandinavia. Denmark and Norway imposed strict NPIs, but Sweden followed an extraordinarily lenient approach. We use an event study to compare COVID-19 hospitalizations, intensive-care (ICU) patients, and deaths in Sweden with Denmark and Norway. The outcome variables initially follow a common trend, but diverge 2–3 weeks after lockdown. Both the timing of the effect and the similarity in the trend between Denmark and Norway are highly consistent with a causal effect of the lockdown. We use our event study to build a counterfactual model that predicts the outcome variables for Denmark and Norway if they had followed Sweden’s approach. In the absence of strict NPIs, the peak number of hospitalizations would have been 2.5 (3.5) times as large in Denmark (Norway). Overall, Denmark (Norway) would have had 334 (671) percent more hospital-patient days, 277 (379) percent more ICU-patient days, and 402 (1015) percent more deaths. The benefit of lockdown in terms of healthcare and mortality costs amounts to between 1 and 4 (0.9 and 3.5) percent of GDP in Denmark (Norway).

Suggested Citation

  • Steffen Juranek & Floris T. Zoutman, 2021. "The effect of non-pharmaceutical interventions on the demand for health care and on mortality: evidence from COVID-19 in Scandinavia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(4), pages 1299-1320, October.
    • Handle: RePEc:spr:jopoec:v:34:y:2021:i:4:d:10.1007_s00148-021-00868-9
    DOI: 10.1007/s00148-021-00868-9
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    15. Steffen Juranek & Jörg Paetzold & Hannes Winner & Floris Zoutman, 2020. "Labor Market Effects of Covid-19 in Sweden and Its Neighbors: Evidence from Novel Administrative Data," CESifo Working Paper Series 8473, CESifo.
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    Cited by:

    1. Antoci, Angelo & Sabatini, Fabio & Sacco, Pier Luigi & Sodini, Mauro, 2022. "Experts vs. policymakers in the COVID-19 policy response," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 22-39.
    2. Anna Godøy & Maja Weemes Grøtting & Rannveig Kaldager Hart, 2022. "Reopening schools in a context of low COVID-19 contagion: consequences for teachers, students and their parents," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 935-961, July.
    3. Mark Pingle, 2022. "Addressing threats like Covid: why we will tend to over-react and how we can do better," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 21(1), pages 9-23, June.
    4. Ulrich Glogowsky & Emanuel Hansen & Simeon Schächtele, 2021. "How effective are social distancing policies? Evidence on the fight against COVID-19," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-12, September.
    5. Guilhem Cassan & Marc Sangnier, 2022. "The impact of 2020 French municipal elections on the spread of COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 963-988, July.
    6. Benjamin Born & Alexander M Dietrich & Gernot J Müller, 2021. "The lockdown effect: A counterfactual for Sweden," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-13, April.
    7. Callaway, Brantly & Li, Tong, 2023. "Policy evaluation during a pandemic," Journal of Econometrics, Elsevier, vol. 236(1).

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    More about this item

    Keywords

    COVID-19; Non-pharmaceutical interventions; Healthcare costs; Mortality; Health economics;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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