2022/07/15 by Asger Lau Andersen, Emil Toft Hansen, Niels Johannesen +1 · 1 citation
Business, Management and Accounting · Economics, Econometrics and Finance · #COVID-19 Pandemic Impacts #Insurance and Financial Risk Management #Islamic Finance and Banking Studies
paper · doi:10.1111/sjoe.12512
openalex publication_date 2022/07/15 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
This paper uses transaction-level bank account data from Denmark to study the dynamics of consumer spending during the Covid-19 pandemic. We document that aggregate spending initially dropped by almost 30% but recovered almost fully after the first wave. While spending plummeted in categories severely affected by supply restrictions, it increased in unaffected categories. Individual exposure to health risks and supply restrictions was associated with much larger spending cuts than exposure to income risk and unemployment. The findings suggest that the contraction was mainly caused by temporary health risks and supply restrictions, with a limited role for persistent negative spill-overs. This article is protected by copyright. All rights reserved.