Structural Analysis of Xenophobia

Abstract

We estimate a signaling game of xenophobic behaviors to understand how individual
racial animus and perceived unacceptance of racial animus determine xenophobic
behaviors in equilibrium. To identify our model, we design a survey about anti-Chinese
xenophobia in the US during the Pandemic. We validate our estimates by comparing our
model predictions with the causal estimates obtained from an information Randomized
Controlled Trial. We find raising perceived unacceptance is more effective than suppressing
racial animus at reducing most xenophobic behaviors. We quantify the effects of a
COVID infection on xenophobic behaviors in the short and long run.

Keywords: racial animus, perceived unacceptance, xenophobia, Sinophobia, COVID-19

JEL Classification: J15, Z13, Z18