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How effective was the restaurant restraining order against COVID-19? A nighttime light study in Japan

Kazunobu Hayakawa, Souknilanh Keola and Shujiro Urata

Japan and the World Economy, 2022, vol. 63, issue C

Abstract: In this study, we examined the effect of the order of shortening business hours of the restaurants, which are considered a major source of spreading the novel coronavirus (COVID-19). Specifically, we empirically investigated how this order changed the nighttime light (NTL) in regions with restaurants in the Greater Tokyo area from January to June 2020. Several local governments in Japan had implemented the order to combat COVID-19. Our investigation found evidence that the order significantly decreased the NTL in regions with many restaurants, indicating the effectiveness of the order and its negative economic/business impacts on restaurants. Interestingly, this order increased the NTL in other areas, such as in residential areas. In contrast to previous studies focused on demand-side factors, our study revealed the importance of supply-side factors in explaining the impact of Japanese government policy against COVID-19 in the first half of 2020.

Keywords: COVID-19; Japan; Nighttime light (search for similar items in EconPapers)
JEL-codes: I14 R11 R14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:63:y:2022:i:c:s0922142522000214

DOI: 10.1016/j.japwor.2022.101136

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