The spread of COVID-19 and the BCG vaccine: A natural experiment in reunified Germany

Author:

Bluhm Richard12,Pinkovskiy Maxim3

Affiliation:

1. Leibniz University Hannover, Institute of Macroeconomics, 30167 Hannover, Germany

2. University of California San Diego, Department of Political Science, La Jolla, CA 92093, USA

3. Federal Reserve Bank of New York, Microeconomic Studies Function, New York, NY 10045, USA

Abstract

Summary The ‘BCG hypothesis' suggests that the Bacillus Calmette-Guérin (BCG) vaccine against tuberculosis limits the severity of COVID-19. We exploit the differential vaccination practices of East Germany and West Germany prior to reunification to test this hypothesis. Using a difference in regression discontinuities (RD-DD) design centred on the end of universal vaccination in the West, we find that differences in COVID-19 severity across cohorts in the East and West are insignificant or have the wrong sign. We document a sharp cross-sectional discontinuity in the severity of the disease, which we attribute to limited mobility across the long-gone border and which disappears when we control for social connectedness. Case and death data after the end of the first lockdown on 26 April does not display a discontinuity at the former border, suggesting that mobility (as opposed to BCG vaccination) played a major role during the initial outbreak.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics

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