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The effect of COVID-19 lockdown and the subsequent reopening on consumption in Iran

Author

Listed:
  • Mohammad Hoseini

    (Institute for Management and Planning Studies (IMPS)
    Tehran Institute for Advanced Studies (TEIAS))

  • Abolmohsen Valizadeh

    (Institute for Management and Planning Studies (IMPS))

Abstract

We use country-wide data on all electronic payments in point-of-sale (POS) and online terminals of Iran to study the change in the pattern of consumption and online-offline substitution during the COVID-19 lockdown and after the relaxation of restrictions in May and June. Using a difference-in-difference approach, we find that during the strictest lockdown month, growth in value of transactions dropped by 41% compared to the benchmark month before the pandemic. After lifting the lockdown, the growth rose by 12% above the benchmark month. We also find that the COVID-19 pandemic led to a spike in online transactions of activities with online terminals and has had a persistent effect on consumer preference for online shopping even after the reopening of the economy.

Suggested Citation

  • Mohammad Hoseini & Abolmohsen Valizadeh, 2021. "The effect of COVID-19 lockdown and the subsequent reopening on consumption in Iran," Review of Economics of the Household, Springer, vol. 19(2), pages 373-397, June.
    • Handle: RePEc:kap:reveho:v:19:y:2021:i:2:d:10.1007_s11150-021-09557-8
    DOI: 10.1007/s11150-021-09557-8
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    References listed on IDEAS

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    Cited by:

    1. Abdullah Kaviani Rad & Redmond R. Shamshiri & Hassan Azarm & Siva K. Balasundram & Muhammad Sultan, 2021. "Effects of the COVID-19 Pandemic on Food Security and Agriculture in Iran: A Survey," Sustainability, MDPI, vol. 13(18), pages 1-20, September.

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    More about this item

    Keywords

    COVID-19; Consumption; Online purchasing; Transaction data; Iran;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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