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This paper proposes a structural econometric approach to estimating the basicreproduction number ($\mathcal{R}_{0}$) of Covid-19. This approach identifies$\mathcal{R}_{0}$ in a panel regression model by filtering out the effects ofmitigating factors on disease diffusion and is easy to implement. We apply themethod to data from 48 contiguous U.S. states and a diverse set of countries.Our results reveal a notable concentration of $\mathcal{R}_{0}$ estimates withan average value of 4.5. Through a counterfactual analysis, we highlight asignificant underestimation of the $\mathcal{R}_{0}$ when mitigating factorsare not appropriately accounted for.

Structural Econometric Estimation of the Basic Reproduction Number for Covid-19 Across U.S. States and Selected Countries