Template-Type: ReDIF-Paper 1.0
Author-Name: Fenella Carpena
Author-Name-First: Fenella
Author-Name-Last: Carpena
Author-Workplace-Name: Oslo Business School, Oslo Metropolitan University
Author-Name: Laurens Swinkels
Author-Name-First: Laurens
Author-Name-Last: Swinkels
Author-Workplace-Name: Erasmus University Rotterdam (EUR); Robeco Asset Management
Author-Name: Dan Zhang
Author-Name-First: Dan
Author-Name-Last: Zhang
Author-Workplace-Name: Oslo Business School, Oslo Metropolitan University
Title: The Effects of COVID-19 Policies on Consumer Spending in Norway
Abstract: This paper examines the effect of COVID-19 policies on consumer spending using bank card transaction data from Norway. Taking advantage of variation in COVID-19 policies over time and across space in the four largest municipalities in the country, we investigate the heterogeneity of effects of policies in their number and type. First, we document that the number of restrictions is negatively correlated with spending and exhibits decreasing marginal effects. Second, restrictions do not affect all types of spending equally: restrictions tend to have larger impacts on the sector in which it is targeted. Finally, we find evidence from a difference-in-differences estimation that supports a causal interpretation of our results.
Classification-JEL: C83, D12, E21
Creation-Date: 2023-07-02
File-URL: https://doi.org/10.2139/ssrn.4497685
File-Format: text/html
DOI: 10.2139/ssrn.4497685
Keywords: Expenditure, Consumption, COVID-19, pandemic
Handle: RePEc:oml:wpaper:202302