COVID-19 vaccination and household savings: An economic recovery channel.
Financ Res Lett
; 54: 103711, 2023 Jun.
Article
in English
| MEDLINE | ID: covidwho-2278119
ABSTRACT
The COVID-19 pandemic increased people's propensity for precautionary savings in response to economic recession (e.g., Mody et al., 2012; Gropp and McShane, 2021; Levine et al., 2021). However, as the relevant vaccine roll-out continues, it mitigates people's concerns and boosts the macroeconomy, which leads to significant declines in household precautionary saving motives. Consistent with this expectation, using U.S. county-level vaccination, deposit, economic, and demographic data, we show that there is a significant negative relationship between COVID-19 vaccination and household savings. We attribute this negative relationship to an economic recovery channel because our findings also suggest that the vaccination has a strong negative impact on the unemployment rate and results in increases in consumer spending. Overall, our study adds to an emerging strand of literature on how COVID-19 vaccination affects households' financial behaviors.
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Type of study:
Health_economic_evaluation
Topics:
Vaccines
Language:
English
Journal:
Financ Res Lett
Year:
2023
Document Type:
Article
Affiliation country:
J.frl.2023.103711
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