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Cities in a pandemic: Evidence from China
Authors:Badi H Baltagi  Ying Deng  Jing Li  Zhenlin Yang
Institution:1. Department of Economics and Center for Policy Research, Syracuse University, Syracuse, New York, USA

Department of Economics, Leicester University, Leicester, UK;2. School of International Trade and Economics, University of International Business and Economics, Beijing, Chaoyang District, China;3. School of Economics, Singapore Management University, Singapore, Singapore

Abstract:This paper studies the impact of urban density, city government efficiency, and medical resources on COVID-19 infection and death outcomes in China. We adopt a simultaneous spatial dynamic panel data model to account for (i) the simultaneity of infection and death outcomes, (ii) the spatial pattern of the transmission, (iii) the intertemporal dynamics of the disease, and (iv) the unobserved city-specific and time-specific effects. We find that, while population density increases the level of infections, government efficiency significantly mitigates the negative impact of urban density. We also find that the availability of medical resources improves public health outcomes conditional on lagged infections. Moreover, there exists significant heterogeneity at different phases of the epidemiological cycle.
Keywords:cities  COVID-19  government efficiency  urban density
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