Effects of the COVID-related stay-at-home order on hospitality sales and automobile traffic counts

ABSTRACT

This paper examines the effects of the COVID-related Stay-at-Home order on hospitality sales and automobile traffic counts in the State of Maine, USA. Empirical results show that the Stay-at-Home order did not impact either measure of state economic activity. Instead, households adjusted their behavior as a result of COVID-19 in advance of the Stay-at-Home order. These results are similar to those found in other states, where Stay-at-Home orders did not impact hospitality sales. This is an important public policy issue given the large health and economic impacts of the pandemic, and widespread use of Stay-at-Home orders. Even beyond the COVID pandemic, however, the extent to which people respond to government restrictions is important for policy development and implementation. © 2021, Oviedo University Press. All rights reserved.