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The effects of COVID‐19 policies on consumer spending in Norway

Author

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  • Fenella Carpena
  • Laurens Swinkels
  • Dan Zhang

Abstract

We examine the effect of COVID‐19 policies on consumer spending using bankcard transactions from Norway. Exploiting variation in COVID‐19 policies over time and across space in the four largest municipalities, we investigate the heterogeneity of policy effects 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 they are targeted. Finally, we find suggestive evidence from a difference‐in‐differences estimation that supports a causal interpretation of our results.

Suggested Citation

  • Fenella Carpena & Laurens Swinkels & Dan Zhang, 2024. "The effects of COVID‐19 policies on consumer spending in Norway," Contemporary Economic Policy, Western Economic Association International, vol. 42(1), pages 56-67, January.
    • Handle: RePEc:bla:coecpo:v:42:y:2024:i:1:p:56-67
    DOI: 10.1111/coep.12627
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    More about this item

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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