Alliance for Pandemic Preparedness

August 4, 2020

Social Distancing Laws Cause Only Small Losses of Economic Activity during the COVID-19 Pandemic in Scandinavia

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  • Sheridan et al. used real-time transaction data from a large Scandinavian bank to estimate reduction in aggregate spending due COVID-19, and found that most of the economic contraction was due to the pandemic in Scandinavian countries, rather than lockdown policies. In Sweden, there was a 25% reduction in aggregate spending as a result of the pandemic. In Denmark, where policies to control the pandemic where imposed, there was an additional 4% reduction.  

Sheridan et al. (Aug 2020). Social Distancing Laws Cause Only Small Losses of Economic Activity during the COVID-19 Pandemic in Scandinavia. Proceedings of the National Academy of Sciences of the United States of America. https://doi.org/10.1073/pnas.2010068117