Real-Time Estimation of the Short-Run Impact of COVID-19 on Economic Activity Using Electricity Market Data.

ABSTRACT: In response to the COVID-19 emergency, many countries have introduced a series of social-distancing measures including lockdowns and businesses' shutdowns, in an attempt to curb the spread of the infection. Accordingly, the pandemic has been generating unprecedented disruption on practically every aspect of society. This paper demonstrates that high-frequency electricity market data can be used to estimate the causal, short-run impacts of COVID-19 on the economy, providing information that is essential for shaping future lockdown policy. Unlike official statistics, which are published with a delay of a few months, our approach permits almost real-time monitoring of the economic impact of the containment policies and the financial stimuli introduced to address the crisis. We illustrate our

SUBMITTER: Fezzi C 

PROVIDER: S-EPMC7399598 | biostudies-literature | 2020

REPOSITORIES: biostudies-literature