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Consumer Responses to the COVID-19 Crisis: Evidence from Bank Account Transaction Data

Author

Listed:
  • Asger Lau Andersen

    (CEBI, Department of Economics, University of Copenhagen)

  • Emil Toft Hansen

    (CEBI, Department of Economics, University of Copenhagen)

  • Niels Johannesen

    (CEBI, Department of Economics, University of Copenhagen)

  • Adam Sheridan

    (CEBI, Department of Economics, University of Copenhagen)

Abstract
This paper uses transaction-level customer data from the largest bank in Denmark to estimate the change in consumer spending caused by the COVID-19 pandemic and the resulting shutdown of the Danish economy. We find that aggregate spending was on average 27% below the counterfactual level without the pandemic in the seven weeks following the shutdown. The spending drop was mostly concentrated on goods and services whose supply was directly restricted by the shutdown, suggesting a limited role for spillovers to non-restricted sectors through demand in the short term. The spending drop was larger for individuals with more ex ante exposure to the adverse consequences of the crisis in the form of job loss, wealth destruction, severe disease and disrupted consumption patterns and, most notably, for individuals with an ex post realization of crisis-related unemployment.

Suggested Citation

  • Asger Lau Andersen & Emil Toft Hansen & Niels Johannesen & Adam Sheridan, 2020. "Consumer Responses to the COVID-19 Crisis: Evidence from Bank Account Transaction Data," CEBI working paper series 20-18, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2018
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    COVID-19; consumer spending; pandemic; social distancing; shutdown;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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