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The Impact of COVID-19 Mask Mandates on Consumer Spending

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  • Cathey, Prosser M

Abstract

The debate around the effects of the imposition of COVID-19 mask mandates has been fervent, however, little research has been done on the economic effects of these mandates. I find that mask mandates have a positive average treatment effect of 3% on consumer spending. I then use survey data to confirm the mechanism: people tend to feel more comfortable participating in the economy when mask-wearing is common. Finally, I provide an estimate of the increase in tax revenue state and local governments can expect to receive as a result of implementing a mask mandate, finding a mask mandate can offset a substantial portion of the pandemic-induced decline in tax revenue.

Suggested Citation

  • Cathey, Prosser M, 2021. "The Impact of COVID-19 Mask Mandates on Consumer Spending," SocArXiv nyv6q_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:nyv6q_v1
    DOI: 10.31219/osf.io/nyv6q_v1
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