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The pandemic shock and the heterogenous responses for durable versus non-durable industries

Author

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  • Enlinson Mattos

    (Fundacao Getulio Vargas - Sao Paulo School of Economics)

  • Leonardo Stelzer-Rossi

    (Tax Revenue Service - Sao Paulo)

Abstract

We use administrative data from a representative state in Brazil to provide robust estimates of the heterogeneous impacts of the COVID-19 pandemic on durable versus non-durable sectors. Employing a dynamic differences-in-differences strategy, our results suggest a 62\% relative reduction in revenues for the automotive industry (durable) in the pandemic shock, accompanied by a nearly 70\% decline in tax collection within the durable relative to the non-durable sector for the three three-month crisis period. Furthermore, our analysis indicates a rebound within three months, reinforcing the fast response of the durable sector after a crisis.

Suggested Citation

  • Enlinson Mattos & Leonardo Stelzer-Rossi, 2024. "The pandemic shock and the heterogenous responses for durable versus non-durable industries," Economics Bulletin, AccessEcon, vol. 44(4), pages 1414-1433.
    • Handle: RePEc:ebl:ecbull:eb-24-00348
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    References listed on IDEAS

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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H8 - Public Economics - - Miscellaneous Issues

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