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Economic Impact of Targeted Government Responses to COVID-19: Evidence from the First Large-scale Cluster in Seoul

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  • Jinwook Shin
  • Seonghoon Kim
  • Kanghyock Koh

Abstract

We estimate the economic impact of South Korea¡¯s targeted responses to the first large-scale COVID-19 cluster in Seoul. We find that foot traffic and retail sales decreased only within a 300 meter radius of the cluster and recovered to its pre-outbreak level after four weeks. The reductions appear to be driven by temporary business closures rather than the risk avoidance behavior of the citizens. Our results imply that less intense, but more targeted COVID-19 interventions, such as pin-pointed, temporary closures of businesses, can be a low-cost alternative after lifting strict social distancing measures.

Suggested Citation

  • Jinwook Shin & Seonghoon Kim & Kanghyock Koh, 2020. "Economic Impact of Targeted Government Responses to COVID-19: Evidence from the First Large-scale Cluster in Seoul," Working Paper Series no138, Institute of Economic Research, Seoul National University.
    • Handle: RePEc:snu:ioerwp:no138
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    Cited by:

    1. Muhammad Asali, 2021. "The New Performance Index: An application to COVID-19 era," Working Papers 003-21, International School of Economics at TSU, Tbilisi, Republic of Georgia.

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    More about this item

    Keywords

    COVID-19; pandemic; information disclosure; risk avoidance; foot traffic; retail sales; cell phone signal data; card transaction data;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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