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

By A. Andersen, E. Hansen, Niels Johannesen, Adam Sheridan. The Scandinavian Journal of Economics, 2020

263 citations recorded by the source corpus.

Abstract This paper uses 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% 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 spill‐overs. This article is protected by copyright. All rights reserved.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/50e6e9d7cf9432a56f7f1563237a4db34dbc0e81

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Niels Johannesen
2. E. Hansen
3. Adam Sheridan
4. A. Andersen
5. Joseph E. Stiglitz
6. G. Zucman

In Economics and Econometrics

1. Cameron Hepburn
2. N. Stern
3. Dimitri Zenghelis
4. Niels Johannesen
5. E. Hansen
6. Adam Sheridan
7. A. Andersen
8. Joseph E. Stiglitz

Citations in the corpus

• Will COVID-19 fiscal recovery packages accelerate or retard progress on climate change? (2020, background): “On the demand side, consumer spending has fallen as it is no longer possible to travel, including to shop for discretionary items, go to restaurants, or to engage in experiencebased activities (Chen et al., 2020; Muellbauer 2020; Andersen et al., 2020).”
• The Cost of the Covid-19 Crisis: Lockdowns, Macroeconomic Expectations, and Consumer Spending (2020, unknown): “Andersen et al. (2020), Chen et al. (2020), and Baker et al. (2020) study the consumption response to the COVID19 pandemic.”
• Do Stay-at-Home Orders Cause People to Stay at Home? Effects of Stay-at-Home Orders on Consumer Behavior (2020, background): “[4] Asger Lau Andersen, Emil Toft Hansen, Niels Johannesen, and Adam Sheridan.”
• Pandemic, Shutdown and Consumer Spending: Lessons from Scandinavian Policy Responses to COVID-19 (2020, methodology): “…to spending drops in other contexts, e.g., it is four times larger than the typical spending drop around unemployment events (Ganong and Noel, 2019; Andersen et al., 2020b), but only around half the size of the aggregate spending drop in countries more adversely affected by the pandemic, such as…”