Encouraging the resumption of economic activity after COVID-19: Evidence from a large scale field experiment in China
As the COVID-19 pandemic comes to an end, governments find themselves facing a new challenge: motivating citizens to resume economic activity. What is an effective way to do so? We investigate this question using a field experiment in the city of Zhengzhou, China immediately following the end of the city's COVID-19 lockdown. Using self-reports and GPS trajectory data from participants' phones, we assessed the effect of providing information about the proportion of participants' neighbors who have resumed economic activity. We find that informing individuals about their neighbors' plans to visit restaurants increases the fraction of participants visiting restaurants by 12 percentage points (37%), amongst those participants who underestimated the proportion of neighbors who resumed economic activity. Those who overestimated did not respond by reducing restaurant attendance, so the intervention yielded no `boomerang' effect. We explore moderators, risk perceptions, and a placebo intervention for parks. All of these analyses suggest our intervention worked by reducing the perceived risk of going to restaurants.