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The Impact of COVID-19 Mask Mandates on Consumer Spending

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  • Cathey, Prosser M

Abstract

The debate around the effects of the imposition of COVID-19 mask mandates has been fervent, however, little research has been done on the economic effects of these mandates. I find that mask mandates have a positive average treatment effect of 3% on consumer spending. I then use survey data to confirm the mechanism: people tend to feel more comfortable participating in the economy when mask-wearing is common. Finally, I provide an estimate of the increase in tax revenue state and local governments can expect to receive as a result of implementing a mask mandate, finding a mask mandate can offset a substantial portion of the pandemic-induced decline in tax revenue.

Suggested Citation

  • Cathey, Prosser M, 2021. "The Impact of COVID-19 Mask Mandates on Consumer Spending," SocArXiv nyv6q, Center for Open Science.
    • Handle: RePEc:osf:socarx:nyv6q
    DOI: 10.31219/osf.io/nyv6q
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    1. Zhixian Lin & Christopher M. Meissner, 2020. "Health vs. Wealth? Public Health Policies and the Economy During Covid-19," NBER Working Papers 27099, National Bureau of Economic Research, Inc.
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    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Health > Distancing and Lockdown > Effect on Economy

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