The effect of COVID-19 lockdown and the subsequent reopening on consumption in Iran

Mohammad Hoseini and Abolmohsen Valizadeh
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Abolmohsen Valizadeh: Institute for Management and Planning Studies (IMPS)

Review of Economics of the Household, 2021, vol. 19, issue 2, No 6, 373-397

Abstract: Abstract We use country-wide data on all electronic payments in point-of-sale (POS) and online terminals of Iran to study the change in the pattern of consumption and online-offline substitution during the COVID-19 lockdown and after the relaxation of restrictions in May and June. Using a difference-in-difference approach, we find that during the strictest lockdown month, growth in value of transactions dropped by 41% compared to the benchmark month before the pandemic. After lifting the lockdown, the growth rose by 12% above the benchmark month. We also find that the COVID-19 pandemic led to a spike in online transactions of activities with online terminals and has had a persistent effect on consumer preference for online shopping even after the reopening of the economy.

Keywords: COVID-19; Consumption; Online purchasing; Transaction data; Iran (search for similar items in EconPapers)
JEL-codes: D12 E21 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11150-021-09557-8

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