Habits and demand changes after COVID-19

Mauro Bambi, Daria Ghilli, Fausto Gozzi and Marta Leocata

Journal of Mathematical Economics, 2024, vol. 110, issue C

Abstract: In this paper, we investigate how a transitory lockdown of a sector of the economy may have changed our habits and, therefore, altered the goods’ demand permanently. In a two-sector infinite horizon economy, we show that the demand of the goods produced by the sector closed during the lockdown could shrink or expand with respect to their pre-pandemic level depending on the lockdown’s duration and the habits’ strength. We also show that the end of a lockdown may be characterized by a price surge due to a combination of strong demand of both goods and rigidities in production.

Keywords: Lockdown; Habits; Pent-up demand; 2-sector economy (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030440682300126X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:110:y:2024:i:c:s030440682300126x

DOI: 10.1016/j.jmateco.2023.102933

Access Statistics for this article

Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii

More articles in Journal of Mathematical Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().