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Consumer responses to the COVID‐19 crisis: evidence from bank account transaction data

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Listed:
  • Asger Lau Andersen
  • Emil Toft Hansen
  • Niels Johannesen
  • Adam Sheridan

Abstract

In this paper, we use transaction‐level bank account data from Denmark to study the dynamics of consumer spending during the COVID‐19 pandemic. We document that aggregate spending initially dropped by almost 30 percent but recovered almost fully after the first wave. While spending plummeted in categories severely affected by supply restrictions, it increased in unaffected categories. Individual exposure to health risks and supply restrictions was associated with much larger spending cuts than exposure to income risk and unemployment. The findings suggest that the contraction was mainly caused by temporary health risks and supply restrictions, with a limited role for persistent negative spillovers.

Suggested Citation

  • Asger Lau Andersen & Emil Toft Hansen & Niels Johannesen & Adam Sheridan, 2022. "Consumer responses to the COVID‐19 crisis: evidence from bank account transaction data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(4), pages 905-929, October.
  • Handle: RePEc:bla:scandj:v:124:y:2022:i:4:p:905-929
    DOI: 10.1111/sjoe.12512
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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