Combating the COVID-19 Pandemic: The Role of the SARS Imprint

Management Science, 67(9), 5606-5615

Nanyang Business School Research Paper No. 20-13

33 Pages Posted: 7 Apr 2020 Last revised: 13 Oct 2021

See all articles by Hong Ru

Hong Ru

Nanyang Business School, Nanyang Technological University

Endong Yang

Faculty of Business Administration, University of Macau

Kunru Zou

Renmin University of China

Multiple version iconThere are 2 versions of this paper

Date Written: January 19, 2021

Abstract

We provide evidence of delayed attention and inaction in response to COVID-19 in countries that did not experience SARS in 2003. Using cross-country data, we find that individuals in countries that had SARS infections in 2003 search more intensively for COVID-19-related information on Google in late January 2020, the time of the first known outbreak in Wuhan, China. Early attention to the novel virus, as measured by Google searches, is associated with deeper stock market drops in countries with SARS experience. In contrast, people in countries without SARS experience started to pay more attention much later, in March. Moreover, governments in these countries responded significantly more slowly in implementing social distancing policies to combat domestic COVID-19 outbreaks than governments in countries with SARS experience. Furthermore, people in countries with SARS experience are more compliant with social distancing rules. These timely attention and proactive responses of individuals and governments are more pronounced in countries that reported deaths caused by SARS, which left deeper imprints. Our findings suggest that the imprint of similar viruses’ experience is a fundamental mechanism underlying timely responses to COVID-19.

Keywords: COVID-19, Imprint, SARS Experience, Delayed Response

JEL Classification: D83, E70, G10, H12, I10

Suggested Citation

Ru, Hong and Yang, Endong and Zou, Kunru, Combating the COVID-19 Pandemic: The Role of the SARS Imprint (January 19, 2021). Management Science, 67(9), 5606-5615, Nanyang Business School Research Paper No. 20-13, Available at SSRN: https://ssrn.com/abstract=3569330 or http://dx.doi.org/10.2139/ssrn.3569330

Hong Ru (Contact Author)

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore
(+65) 67904661 (Phone)

HOME PAGE: http://https://hongru.mit.edu/

Endong Yang

Faculty of Business Administration, University of Macau ( email )

Macau

Kunru Zou

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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