The "Great Lockdown" and cultural consumption in the UK.

In this paper, we exploit a unique weekly longitudinal survey of adults in the UK purposefully collected to study consumption choices with respect to cultural content types during the first Covid-19 national lockdown (the "Great Lockdown"). We look for changes in the probability of consuming different cultural and creative types of content (Music, Movies, TV, Games, Books, Magazines and Audiobooks), as well as changes in the overall variety of consumption. We find that changes in consumption depend on the type of content. In particular, other things being equal, the likelihood of listening to Music and playing Games went up and the likelihood of reading Books went down. We find little statistically significant evidence of changes in the probability of consumption of the other types of content. We find that, while on average individuals increased the variety of their consumption, the statistical significance of this increase varied depending on the socio-demographic and economic characteristic of interest. In particular, we find evidence of an increase in the variety of consumption for those at the bottom of the distribution of socio-economic status, which speaks to the importance of access to culture and creativity during lockdown for this specific social class.

Stabilizing effect of volatility in financial markets.

In financial markets, greater volatility is usually considered to be synonymous with greater risk and instability. However, large market downturns and upturns are often preceded by long periods where price returns exhibit only small fluctuations. To investigate this surprising feature, here we propose using the mean first hitting time, i.e., the average time a stock return takes to undergo for the first time a large negative (crashes) or positive variation (rallies), as an indicator of price stability, and relate this to a standard measure of volatility. In an empirical analysis of daily returns for 1071 stocks traded in the New York Stock Exchange, we find that this measure of stability displays nonmonotonic behavior, with a maximum, as a function of volatility. Also, we show that the statistical properties of the empirical data can be reproduced by a nonlinear Heston model. This analysis implies that, contrary to conventional wisdom, not only high, but also low volatility values can be associated with higher instability in financial markets. This proposed measure of stability can be extremely useful in risk control.