Causal effects of closing businesses in a pandemic

• 成果类型: Article
• 署名作者: Barrot, Jean -Noel; Bonelli, Maxime; Grassic, Basile; Sauvagnatc, Julien
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; University of London; London Business School; Bocconi University; Bocconi University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103794
• 发表日期: 2024
• 关键词: Business closures; profits; wages; Covid-19

摘要

We study whether state -level mandatory business closures implemented in response to the outbreak of the Covid19 causally affect economic and health outcomes. Using plausibly exogenous variations in exposure to these restrictions, we find that they impose substantial losses to firms and workers, the former bearing approximately two thirds of the cost, consistent with firms partially insuring their workers. We show that mandatory business closures have a significant negative causal effect on mortality rates, particularly in areas featuring contactintensive occupations. We discuss the assumptions under which the health benefits of business closures exceed their associated economic costs.