%0 Report %A Chen, Simiao %A Jin, Zhangfeng %A Bloom, David E. %T Act Early to Prevent Infections and Save Lives: Causal Impact of Diagnostic Efficiency on the COVID-19 Pandemic %D 2020 %8 2020 Sep %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 13749 %U https://www.iza.org/publications/dp13749 %X This paper examines the impact of diagnostic efficiency on the COVID-19 pandemic. Using an exogenous policy on diagnostic confirmation, we show that a one- day decrease in the time taken to confirm the first case in a city publicly led to 9.4% and 12.7% reductions in COVID-19 prevalence and mortality over the subsequent six months, respectively. The impact is larger for cities that are farther from the COVID-19 epicenter, are exposed to less migration, and have more responsive public health systems. Social distancing and a less burdened health system are likely the underlying mechanisms, while the latter also explains the more profound impact on reducing deaths than reducing infections. %K diagnostic efficiency %K information disclosure %K social distancing %K COVID-19 %K China %K instrumental variable