How Does Household Spending Respond to an Epidemic? Consumption During the 2020 COVID-19 Pandemic
National Bureau of Economic Research Working Paper Series
; No. 26949, 2020.
Article
in English
| NBER | ID: grc-748381
ABSTRACT
We explore how household consumption responds to epidemics, utilizing transaction-level household financial data to investigate the impact of the COVID-19 virus. As the number of cases grew, households began to radically alter their typical spending across a number of major categories. Initially spending increased sharply, particularly in retail, credit card spending and food items. This was followed by a sharp decrease in overall spending. Households responded most strongly in states with shelter-in-place orders in place by March 29th. We explore heterogeneity across partisan affiliation, demographics and income. Greater levels of social distancing are associated with drops in spending, particularly in restaurants and retail.
Full text:
Available
Collection:
Databases of international organizations
Database:
NBER
Language:
English
Journal:
National Bureau of Economic Research Working Paper Series
Year:
2020
Document Type:
Article
Similar
MEDLINE
...
LILACS
LIS