The 90% economy that lockdowns will leave behind
CEBI researchers in The Economist
In the newest issue The Economist explores the facets of a society facing a new terrain. And among a number of countries and experts the author looks towards Denmark and Niels Johannesen, Asger Lau Andersen, Adam Sheridan and Emil Toft Hansen
Research by Niels Johannesen of Copenhagen University and colleagues finds that aggregate-spending patterns in Sweden and Denmark over the past months look similarly reduced, even though Denmark has had a pretty strict lockdown while official Swedish provisions have been exceptionally relaxed. This suggests that personal choice, rather than government policy, is the biggest factor behind the drop. And personal choices may be harder to reverse.