This paper uses transaction-level customer data from the largest bank in Denmark to estimate consumer responses to the Covid-19 pandemic and the partial shutdown of the economy. We find that aggregate card spending has dropped sharply by around 25% following the shutdown. The drop is mostly concentrated on goods and services whose supply is directly restricted by the shutdown, suggesting a limited role for spillovers to non-restricted sectors through demand in the short term. The spending drop is somewhat larger for individuals more exposed to the economic risks and health risks introduced by the Covid-19 crisis; however, pre-crisis spending shares in the restricted sectors is a much stronger correlate of spending responses.
Lead investigator: | Asger Lau Anderson |
Affiliation: | University of Copenhagen |
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Start date | 1/2018 |
End date | 3/2020 |
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