| dc.description.abstract | This paper estimates how strongly COVID-19 containment policies have impacted aggregate
economic activity. We use a difference-in-differences methodology to estimate how containment
zones of different severity across India impacted district-level nighttime light intensity, as well as
household income and consumption. From May to July 2020, nighttime light intensity was 9.1 %
lower in districts with the most severe restrictions compared with districts with the least severe
restrictions, which could imply between 5.8 % and 6.6 % lower GDP. Nighttime light intensity
was only 1.6 % lower in districts with intermediate restrictions. The differences were largest in
May during the graded lockdown, and tapered in June and July. Lower household income and
consumption corresponding to zone-wise restrictions corroborate these results. Stricter containment measures had larger impacts in districts with greater population density, older residents,
and more services employment. The large magnitudes of the findings suggest that governments
should carefully consider the economic costs of country-wide pandemic containment policies
while weighing the trade-offs against public health benefits. | en_US |
