IDEAS home Printed from https://ideas.repec.org/p/ind/igiwpp/2023-008.html
   My bibliography  Save this paper

Rein in pandemic by pricing vaccine: Does social trust matter?

Author

Listed:
  • Upasak Das

    (Global Development Institute, University of Manchester)

  • Rupayan Pal

    (Indira Gandhi Institute of Development Research)

  • Udayan Rathore

    (Oxford Policy Management)

  • Bibhas Saha

    (Durham University Business School)

Abstract

In this paper, we explore the role of Generalized Social Trust (GST) in promoting public health during pandemics. We theorize and empirically test the effect of GST on individual's likelihood (LTP) and willingness to pay (WTP) for vaccines of different efficacy. Using survey data from Madhya Pradesh, India, which was collected just before the COVID-19 vaccine rollout in 2021, we find a positive role of GST in promoting LTP and WTP for different vaccine variants. Our identification strategy relies on exogeneous variation in out-group trust of neighbors of respondents as instrument variables. The findings are robust to multiple internal validity checks. Importantly, we find that when efficacy of the vaccine falls, the marginal effects of GST on LTP and WTP increase. The finding suggests that when an individual with higher GST faces a higher chance of infecting others through availability of lower efficacy vaccine, she is less likely to free ride and thus pay more at the margin.

Suggested Citation

  • Upasak Das & Rupayan Pal & Udayan Rathore & Bibhas Saha, 2023. "Rein in pandemic by pricing vaccine: Does social trust matter?," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2023-008, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2023-008
    as

    Download full text from publisher

    File URL: http://www.igidr.ac.in/pdf/publication/WP-2023-008.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    2. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    3. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1071-1102.
    4. Mukhopadhyay, Abhiroop & Sahoo, Soham, 2016. "Does access to secondary education affect primary schooling? Evidence from India," Economics of Education Review, Elsevier, vol. 54(C), pages 124-142.
    5. Lee, Jean N. & Mahmud, Mahreen & Morduch, Jonathan & Ravindran, Saravana & Shonchoy, Abu S., 2021. "Migration, externalities, and the diffusion of COVID-19 in South Asia☆," Journal of Public Economics, Elsevier, vol. 193(C).
    6. Müller, Stephan & Rau, Holger A., 2021. "Economic preferences and compliance in the social stress test of the COVID-19 crisis," Journal of Public Economics, Elsevier, vol. 194(C).
    7. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    8. Barrios, John M. & Benmelech, Efraim & Hochberg, Yael V. & Sapienza, Paola & Zingales, Luigi, 2021. "Civic capital and social distancing during the Covid-19 pandemic☆," Journal of Public Economics, Elsevier, vol. 193(C).
    9. Eduardo Levy Yeyati & Patricio Goldstein & Luca Sartorio, 2021. "Lockdown Fatigue: The Diminishing Effects of Quarantines on the Spread of COVID-19," Growth Lab Working Papers 170, Harvard's Growth Lab.
    10. José Azar & Ioana Marinescu & Marshall Steinbaum, 2022. "Labor Market Concentration," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 167-199.
    11. Borgonovi, Francesca & Andrieu, Elodie, 2020. "Bowling together by bowling alone: Social capital and COVID-19," Social Science & Medicine, Elsevier, vol. 265(C).
    12. Upasak Das & Amartya Paul & Mohit Sharma, 2023. "Reducing Delay in Payments in Welfare Programs: Experimental Evidence from an Information Dissemination Intervention," The World Bank Economic Review, World Bank, vol. 37(3), pages 494-517.
    13. Patricio Goldstein & Eduardo Levy Yeyati & Luca Sartorio, 2021. "Lockdown fatigue: The diminishing effects of quarantines on the spread of COVID-19," Department of Economics Working Papers wp_gob_2021_01, Universidad Torcuato Di Tella.
    14. Rachel Heath & Xu Tan, 2020. "Intrahousehold Bargaining, Female Autonomy, and Labor Supply: Theory and Evidence from India," Journal of the European Economic Association, European Economic Association, vol. 18(4), pages 1928-1968.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sumana Kundu & Rupayan Pal, 2024. "Individuals social concern, externalities and voluntary vaccination: Monopoly and first-best public policy," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2024-023, Indira Gandhi Institute of Development Research, Mumbai, India.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maja Adena & Julian Harke, 2022. "COVID-19 and pro-sociality: How do donors respond to local pandemic severity, increased salience, and media coverage?," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 824-844, June.
    2. Liu, Jing & Lee, Monica & Gershenson, Seth, 2021. "The short- and long-run impacts of secondary school absences," Journal of Public Economics, Elsevier, vol. 199(C).
    3. Sania Ashraf & Cristina Bicchieri & Upasak Das & Tanu Gupta & Alex Shpenev, 2024. "Learning from diversity: ``jati" fractionalization, social expectations and improved sanitation practices in India," Discussion Papers 24-01, Indian Statistical Institute, Delhi.
    4. Étienne Dagorn & Martina Dattilo & Matthieu Pourieux, 2022. "Preferences matter! Political Responses to the COVID-19 and Population’s Preferences," Economics Working Paper Archive (University of Rennes & University of Caen) 2022-01, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    5. Bartscher, Alina Kristin & Seitz, Sebastian & Siegloch, Sebastian & Slotwinski, Michaela & Wehrhöfer, Nils, 2021. "Social capital and the spread of covid-19: Insights from european countries," Journal of Health Economics, Elsevier, vol. 80(C).
    6. Olivier Sterck, 2020. "Fighting for Votes: Theory and Evidence on the Causes of Electoral Violence," Economica, London School of Economics and Political Science, vol. 87(347), pages 844-883, July.
    7. Angelini, Viola & Costa-Font, Joan, 2023. "Health and wellbeing spillovers of a partner's cancer diagnosis," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 422-437.
    8. Suting Hong & Konstantinos Serfes & Veikko Thiele, 2020. "Competition in the venture capital market and the success of startup companies: Theory and evidence," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 741-791, October.
    9. Gurmeet S. Bhabra & Ashrafee T. Hossain, 2023. "Asset redeployability and CEO inside debt," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4299-4331, December.
    10. Zsoka Koczan & Alexander Plekhanov, 2024. "Scarred for Life? Recession Experiences, Beliefs and the State," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(4), pages 1074-1111, August.
    11. Ashima Goyal & Prashant Mehul Parab, 2019. "Modeling Consumers' Confidence and Inflation Expectations," Economics Bulletin, AccessEcon, vol. 39(3), pages 1817-1832.
    12. Echeverría, Lucía, 2020. "Modelos colectivos de consumo y distribución intra-hogar. Teoría y aplicaciones," Nülan. Deposited Documents 3832, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    13. Dustmann, Christian & Ku, Hyejin & Kwak, Do Won, 2018. "Why Are Single-Sex Schools Successful?," Labour Economics, Elsevier, vol. 54(C), pages 79-99.
    14. Hung‐Hao Chang & Chad D. Meyerhoefer, 2021. "COVID‐19 and the Demand for Online Food Shopping Services: Empirical Evidence from Taiwan," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 448-465, March.
    15. Das, Upasak & Singhal, Karan, 2023. "Solving it correctly: Prevalence and persistence of gender gap in basic mathematics in rural India," International Journal of Educational Development, Elsevier, vol. 96(C).
    16. Zhang, Li & Xie, Lunyu & Zheng, Xinye, 2023. "Across a few prohibitive miles: The impact of the Anti-Poverty Relocation Program in China," Journal of Development Economics, Elsevier, vol. 160(C).
    17. Sania Ashraf & Cristina Bicchieri & Upasak Das. Alex Shpenev, 2023. "Valuing Open Defecation Free Surroundings: Experimental Evidence from a Norm-Based Intervention in India," Papers 2312.16205, arXiv.org.
    18. Upasak Das & Prasenjit Sarkhel & Sania Ashraf, 2022. "Love Thy Neighbour? Perceived Community Abidance and Private Compliance to COVID-19 Norms in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 23(1), pages 30-51, March.
    19. Upasak Das & Udayan Rathore & Prasenjit Sarkhel, 2020. "Social Diversity and Spread of Pandemic: Evidence from India," Papers 2011.05839, arXiv.org, revised May 2023.
    20. So Yoon Ahn & Youjin Hahn & Semee Yoon, 2021. "Can New Learning Opportunities Reshape Gender Attitudes for Girls?: Field Evidence from Tanzania," Working Papers 2021-046, Human Capital and Economic Opportunity Working Group.

    More about this item

    Keywords

    Social trust; Vaccine efficacy; COVID-19; Outer-group trust; Willingness to Pay;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:igiwpp:2023-008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shamprasad M. Pujar (email available below). General contact details of provider: https://edirc.repec.org/data/igidrin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.