Abstract:
Since December 2020 vaccines against the SARS-CoV-2 virus have been available. However, little is known regarding their effects on infections and on hospitalizations. To gain insight into this topic we empirically analyze the effects of the vaccinations against SARS-CoV-2 for European countries beginning 2021 to February 2022 with weekly data. We perform panel fixed effects estimations, GMM estimations and nonlinear penalized spline estimations. We find a statistically significant and positive relationship between the share of infections with the SARS-CoV-2 virus and the share of vaccinated people in nine estimations while one estimation output was insignificant. Regarding hospitalizations, six out of ten estimations yielded a statistically insignificant relationship, and three estimation results were weakly statistically significant with a negative coefficient and one indicated a statistically significant negative relation. Hence, there is empirical evidence for a positive relationship between infections and the share of vaccinated people whereas we find weak empirical evidence for a negative relation between vaccinations and hospitalizations. The implication of our analysis is that vaccinations alone cannot end the pandemic. Rather developing effective medicines should be seen as an additional measure.
