The COVID-19 Instruments’ Effectiveness in Mitigating the Pandemic Impact on Spanish Consumption

Antonio Cutanda () and Juan A. Sanchís ()
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Antonio Cutanda: Universidad de Valencia
Juan A. Sanchís: Universidad de Valencia and ERICES

Hacienda Pública Española / Review of Public Economics, 2025, vol. 254, issue 3, 87-118

Abstract: This study evaluates how the pandemic affected non-durable household spending in 2020. Using panel data from the Spanish Survey of Household Finances, we compare actual expenditures with predicted values from a consumption model. Results reveal smaller individual-level income and spending declines than National Accounts data suggests. The estimated reduction in non-durable consumption is positively related to wealth but negatively to income. Additionally, we regress each individual estimated decline in non-durable spending on a set of indicators for different COVID-19 policy measures. Results indicate that these interventions did not significantly support non-durable expenditure, potentially explaining increased savings during the pandemic.

Keywords: Consumer spending; Panel data; COVID-19; Fiscal policy (search for similar items in EconPapers)
JEL-codes: C23 D12 E21 E65 H31 (search for similar items in EconPapers)
Date: 2025
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