Distributional Effects of COVID-19 on Spending: A First Look at the Evidence from Spain

Marta Reynal-Querol and José García-Montalvo

No 1201, Working Papers from Barcelona School of Economics

Abstract: We use data from a a large Spanish personal ï¬ nance management ï¬ ntech to have a ï¬ rst look at the heterogeneous effects of the COVID-19 on spending. We show a large reduction on spending since mid- March, coinciding with the shutdown of the economy and the strict conï¬ nement of population. Since the end of April the is a recovery of spending although, by the end of June, it is still 20% below the level of the previous year. Opposite to what has been observed in other countries, the recovery of spending is not more intense in low-income families than in their high-income counterparts. However, there is some evidence of differences in the intensity of rebound by age and account balance. This suggest differences in the intensity of government beneï¬ ts for low-income families and ï¬ nancial difficulties for low-liquidity families.

Keywords: liquidity; income; COVID-19; spending; administrative data; high frequency (search for similar items in EconPapers)
JEL-codes: E21 E62 E65 H31 (search for similar items in EconPapers)
Date: 2020-09
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (4)

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