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Business Closures and (Re)Openings in Real-Time Using Google Places: Proof of Concept

Author

Listed:
  • Daniel E. Rigobon

    (Operations Research & Financial Engineering (ORFE), Princeton University, Princeton, NJ 08540, USA)

  • Thibaut Duprey

    (Bank of Canada, Ottawa, ON K1A 0G9, Canada)

  • Artur Kotlicki

    (Bank of England, London EC2R 8AH, UK)

  • Philip Schnattinger

    (Bank of England, London EC2R 8AH, UK)

  • Soheil Baharian

    (Bank of Canada, Ottawa, ON K1A 0G9, Canada)

  • Thomas R. Hurd

    (Department of Mathematics and Statistics, McMaster University, Hamilton, ON L8S 4K1, Canada)

Abstract

We present a new estimation of business opening and closure rates using data from Google Places—the data set behind the Google Maps service. Our algorithm, through a bisection routine, counts the appearance and disappearance of “pins” that represent unique businesses. As a proof of concept, we compute business opening and closure rates for the city of Ottawa during the reopening phase of the COVID-19 pandemic in mid-2021. The lifting of restrictions coincides with a wave of re-entry of temporarily closed businesses, suggesting that government support may have facilitated the survival of hibernating businesses. Our entry estimates are validated by a survey of new businesses. This methodology allows policymakers to monitor business dynamics in quasi-real-time during rapidly unfolding crises.

Suggested Citation

  • Daniel E. Rigobon & Thibaut Duprey & Artur Kotlicki & Philip Schnattinger & Soheil Baharian & Thomas R. Hurd, 2022. "Business Closures and (Re)Openings in Real-Time Using Google Places: Proof of Concept," JRFM, MDPI, vol. 15(4), pages 1-10, April.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:4:p:183-:d:794531
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    References listed on IDEAS

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    Cited by:

    1. Robert Fairlie & Frank M. Fossen & Reid Johnsen & Gentian Droboniku, 2023. "Were small businesses more likely to permanently close in the pandemic?," Small Business Economics, Springer, vol. 60(4), pages 1613-1629, April.

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