The Impact of COVID-19 Mask Mandates on Consumer Spending

Prosser M Cathey

No nyv6q, SocArXiv from Center for Open Science

Abstract: The debate around the effects of the imposition of COVID-19 mask mandates has been fervent, however, little research has been done on the economic effects of these mandates. I find that mask mandates have a positive average treatment effect of 3% on consumer spending. I then use survey data to confirm the mechanism: people tend to feel more comfortable participating in the economy when mask-wearing is common. Finally, I provide an estimate of the increase in tax revenue state and local governments can expect to receive as a result of implementing a mask mandate, finding a mask mandate can offset a substantial portion of the pandemic-induced decline in tax revenue.

Date: 2021-03-12
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:nyv6q

DOI: 10.31219/osf.io/nyv6q

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