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Fear of COVID-19 Contagion: The Idiosyncratic Effects of an Aggregate Pandemic Shock

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  • Junichi Kikuchi
  • Ryoya Nagao
  • Yoshiyuki Nakazono

Abstract

We examine how the fear of COVID-19 contagion influences consumer expenditure patterns. We show that the consumption expenditure responses to the spread of the COVID-19 pandemic are significantly heterogeneous across generations. We find that the elderly spend less than the younger generation by at least 5% as COVID-19 spread. In fact, those aged above 60 significantly decreased their spending even on food and drink products by 13%. We also find that the elderly forgo shopping in favor of the younger generation. These heterogeneous responses are likely to be due to the fear of the COVID-19 infection.

Suggested Citation

  • Junichi Kikuchi & Ryoya Nagao & Yoshiyuki Nakazono, 2021. "Fear of COVID-19 Contagion: The Idiosyncratic Effects of an Aggregate Pandemic Shock," ISER Discussion Paper 1144, Institute of Social and Economic Research, Osaka University.
  • Handle: RePEc:dpr:wpaper:1144
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    File URL: https://www.iser.osaka-u.ac.jp/library/dp/2021/DP1144.pdf
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    References listed on IDEAS

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