Covid-19 Policy Convergence in Response to Knightian Uncertainty.

Abstract

Domestic policy responses to COVID-19 were remarkably consistent during the early days of the pandemic. What explains this policy convergence? Our formal model suggests that the novel character of COVID-19 produced a period of maximum policy uncertainty, incentivizing political actors to converge on a common set of policies to minimize their exposure to electoral punishment. This convergence is likely to break down as policy feedback produces opinion divergence among experts and the public and as politicians recalculate the costs and benefits of various policy responses and under some conditions facing incentives to adopt extreme policies.