The pandemic shock and the heterogenous responses for durable versus non-durable industries

Enlinson Mattos and Leonardo Stelzer-Rossi ()
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Leonardo Stelzer-Rossi: Tax Revenue Service - Sao Paulo

Economics Bulletin, 2024, vol. 44, issue 4, 1414 - 1433

Abstract: We use administrative data from a representative state in Brazil to provide robust estimates of the heterogeneous impacts of the COVID-19 pandemic on durable versus non-durable sectors. Employing a dynamic differences-in-differences strategy, our results suggest a 62\% relative reduction in revenues for the automotive industry (durable) in the pandemic shock, accompanied by a nearly 70\% decline in tax collection within the durable relative to the non-durable sector for the three three-month crisis period. Furthermore, our analysis indicates a rebound within three months, reinforcing the fast response of the durable sector after a crisis.

Keywords: administrative tax data; COVID shock; industries heterogeneous responses; durable versus non-durable sectors (search for similar items in EconPapers)
JEL-codes: H2 H8 (search for similar items in EconPapers)
Date: 2024-12-30
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