The psychological burden of the COVID-19 pandemic severity

The alarming levels of spread and severity of COVID-19 have dominated global attention. In this time of crisis, there is an urgent need for studies identifying the linkages between the pandemic and social welfare. To help policymakers respond to the situation better, we investigate how the severity of the COVID-19 pandemic can condition people's psychological well-being. Employing the latest weekly panel data within an individual fixed effects framework, we uncover the damaging consequences of the COVID-19 severity, as measured by mortality rate, on the incidences of daily anxiety, worry, displeasure, and depression in the United States. Our work underlines the importance of public spending on mental health, both during and after the pandemic.