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Firm-Level Exposure to Epidemic Diseases: Covid-19, SARS, and H1N1

Author

Listed:
  • Tarek A. Hassan

    (Boston University, NBER, and CEPR)

  • Laurence van Lent

    (Tilburg University)

  • Stephan Hollander

    (Frankfurt School of Finance and Management)

  • Ahmed Tahoun

    (London Business School)

Abstract

Using tools described in our earlier work (Hassan et al., 2019, 2020), we develop textbased measures of the costs, benefits, and risks listed firms in the US and over 80 other countries associate with the spread of Covid-19 and other epidemic diseases. We identify which firms expect to gain or lose from an epidemic disease and which are most affected by the associated uncertainty as a disease spreads in a region or around the world. As Covid-19 spreads globally in the first quarter of 2020, we find that firms’ primary concerns relate to the collapse of demand, increased uncertainty, and disruption in supply chains. Other important concerns relate to capacity reductions, closures, and employee welfare. By contrast, financing concerns are mentioned relatively rarely. We also identify some firms that foresee opportunities in new or disrupted markets due to the spread of the disease. Finally, we find some evidence that firms that have experience with SARS or H1N1 have more positive expectations about their ability to deal with the coronavirus outbreak.

Suggested Citation

  • Tarek A. Hassan & Laurence van Lent & Stephan Hollander & Ahmed Tahoun, 2020. "Firm-Level Exposure to Epidemic Diseases: Covid-19, SARS, and H1N1," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-340, Boston University - Department of Economics.
  • Handle: RePEc:bos:iedwpr:dp-340
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    References listed on IDEAS

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    More about this item

    Keywords

    Epidemic diseases; pandemic; exposure; virus; firms; uncertainty; sentiment; machine learning;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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