Economic Losses Associated with COVID-19 Deaths in the United States

Abstract

AbstractIn addition to the overwhelming health effects of COVID-19, the disease has inflicted unprecedented economic damage. Vast resources have been directed at COVID-19 testing and health care while economic activity has been substantially curtailed due to disruptions resulting from individual choices and government policies. This study estimates the economic loss associated with COVID-19 deaths in the U.S. from February 1, 2020 through July 11, 2020. We use estimates of years of life lost that are based on the age and gender of decedents. Using a value of life year estimate of $66,759, we calculate economic losses of roughly $66 billion. The losses are concentrated in New York and New Jersey, which account for 17.5% of the total losses. Our analysis of per capita losses by state indicates that the highest values are located in the northeastern region of the country, while the values in the western states are relatively low. While economic losses associate with COVID-19 deaths is just one aspect of the pandemic, our estimates can provide context to the value of prevention and mitigation efforts.JEL codesI12, I18, J17