Fortunately, economists no longer have to rely on inherently flawed projections. We can use real data. In what might turn out to be the best paper on the economics of Covid-19, a team of economists from the University of California, Berkeley carefully
evaluated empirical data on social distancing, shelter-in-place orders, and lives saved. To measure the impact of social distancing, they gathered data from cellphones on travel patterns, foot traffic in nonessential businesses, and personal interactions.
Their findings? Social-distancing measures reduced person-to-person contact by about 50%, while harsher shelter-in-place rules reduced contact by only an additional 5%. Then, using data on Covid-19 infection and mortality, they estimated that these measures saved 74,000 lives. Finally, after using demographic data to adjust the VSL—which is lower for older people, who have fewer years to live—the study found that the gross benefit of social distancing has been a mere $250 billion.