Modeling economic impacts of mobility restriction policy during the COVID-19 pandemic.

ABSTRACT

The economic impacts of pandemics can be enormous. However, lockdown and human mobility restrictions are effective policies for containing the spread of the disease. This study proposes a framework for assessing the economic impact of varying degrees of movement restrictions and examines the effectiveness of this framework in a case study examining COVID-19 control measures in Japan. First, mobile network operators data and total employment statistics on a 500-meter grid scale are used to determine the status of mobility restrictions and impacts on consumption in 30 industrial sectors. Next, the economic impacts are assessed using a spatial computable general equilibrium (CGE) model, proven to yield valuable insights into the total economic impacts of natural disasters. In sectors that implement telework and e-commerce-wholesale/retail, finance/insurance, and communication sectors-estimates of production and GDP are obtained that are close to the actual figures. The current case study is limited to Japan, but similar analysis can be conducted by using the CGE model for each country and open mobility data. Thus, the framework has potential to serve as an effective tool for assessing trade-offs between infection risks and economic impacts to inform policy-making by combining with findings from epidemiology.