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Closed for business: The mortality impact of business closures during the Covid-19 pandemic

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  • Dion Bongaerts
  • Francesco Mazzola
  • Wolf Wagner

Abstract

We investigate the effectiveness of business shutdowns to contain the Covid-19 disease. In March 2020, Italy shut down operations in selected sectors of its economy. Using a difference-in-differences approach, we find that municipalities with higher exposure to closed sectors experienced subsequently lower mortality rates. The implied life savings exceed 9,400 people over a period of less than a month. We also find that business closures exhibited rapidly diminishing returns and had large effects outside the closed businesses themselves, including spillovers to other municipalities. Overall, the results suggest business shutdowns are effective, but should be selectively implemented and centrally coordinated.

Suggested Citation

  • Dion Bongaerts & Francesco Mazzola & Wolf Wagner, 2021. "Closed for business: The mortality impact of business closures during the Covid-19 pandemic," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-17, May.
    • Handle: RePEc:plo:pone00:0251373
    DOI: 10.1371/journal.pone.0251373
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    References listed on IDEAS

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    Cited by:

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    2. Shah, Muhammad Ibrahim & Foglia, Matteo & Shahzad, Umer & Fareed, Zeeshan, 2022. "Green innovation, resource price and carbon emissions during the COVID-19 times: New findings from wavelet local multiple correlation analysis," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    3. Amanda C. Stype & Mehmet E. Yaya & Jayson Osika, 2023. "Non-pharmaceutical Interventions and COVID-19: Do County- and State-Level Policies Predict the Spread of COVID-19?," Journal of Economics, Race, and Policy, Springer, vol. 6(2), pages 126-142, June.
    4. Barrot, Jean-Noël & Bonelli, Maxime & Grassi, Basile & Sauvagnat, Julien, 2024. "Causal effects of closing businesses in a pandemic," Journal of Financial Economics, Elsevier, vol. 154(C).
    5. Gaggero, Alessio & Mesa-Pedrazas, Ángela & Fernández-Pérez, Ángel, 2024. "Shutting down to save lives: A regression discontinuity analysis of non-essential business closure," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    6. Anand, Amitabh & Singh, Sanjay Kumar & Bowen, Melanie & Rangarajan, Deva, 2024. "Strategic renewal during crises - A pragmatist proposition for multinational enterprises in a globalized world," Journal of International Management, Elsevier, vol. 30(3).

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