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Business Closures and (Re)Openings in Real Time Using Google Places

Author

Listed:
  • Thibaut Duprey
  • Daniel E. Rigobon
  • Philip Schnattinger
  • Artur Kotlicki
  • Soheil Baharian
  • T. R. Hurd

Abstract

We present a new method to measure business opening and closure rates using real-time information from Google Places, the dataset behind the Google Maps service. Our Canadian application confirms the importance of temporary closures and reopenings during the COVID-19 pandemic. Over 50% of the temporarily closed food and retail businesses during the April 2021 lockdown reopened by the end of September. Our estimates align well with the timing of COVID-19 restrictions and are validated by a survey of recently opened businesses. Our framework provides policy-makers with a tool for the timely monitoring of business dynamics.

Suggested Citation

  • Thibaut Duprey & Daniel E. Rigobon & Philip Schnattinger & Artur Kotlicki & Soheil Baharian & T. R. Hurd, 2022. "Business Closures and (Re)Openings in Real Time Using Google Places," Staff Working Papers 22-1, Bank of Canada.
    • Handle: RePEc:bca:bocawp:22-1
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    References listed on IDEAS

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    4. Sedláček, Petr, 2020. "Lost generations of firms and aggregate labor market dynamics," Journal of Monetary Economics, Elsevier, vol. 111(C), pages 16-31.
    5. Alberto Cavallo & Roberto Rigobon, 2016. "The Billion Prices Project: Using Online Prices for Measurement and Research," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 151-178, Spring.
    6. Pierre-Olivier Gourinchas & Şebnem Kalemli-Özcan & Veronika Penciakova & Nick Sander, 2021. "COVID-19 and Small- and Medium-Sized Enterprises: A 2021 "Time Bomb"?," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 282-286, May.
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    Cited by:

    1. Robert Fairlie & Frank M. Fossen & Reid Johnsen & Gentian Droboniku, 2023. "Were small businesses more likely to permanently close in the pandemic?," Small Business Economics, Springer, vol. 60(4), pages 1613-1629, April.

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    More about this item

    Keywords

    Firm dynamics; Recent economic and financial developments;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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