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Fear of COVID-19 contagion and consumption: Evidence from a survey of Italian households.

ABSTRACT: Using a new survey of Italian households, we study the effect of fear of COVID-19 contagion and income risk on consumption. The survey elicits individual-level indicators of fear of contagion, distinguishing between worries while working, shopping, traveling, eating out and meeting relatives or friends. We find that the probabilities of consumption drops and increased saving after the pandemics are positively associated to fear of contagion, particularly while shopping. Income uncertainty also contributes to savings increase and consumption drop. Our findings suggest that fear of contagion and income risk limits the effectiveness of policies aimed at stimulating consumption during the pandemic.

SUBMITTER: Immordino G

PROVIDER: S-EPMC9015365 | biostudies-literature | 2022 Mar

REPOSITORIES: biostudies-literature

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Fear of COVID-19 contagion and consumption: Evidence from a survey of Italian households.

Immordino Giovanni G Jappelli Tullio T Oliviero Tommaso T Zazzaro Alberto A

Health economics 20211227 3

Using a new survey of Italian households, we study the effect of fear of COVID-19 contagion and income risk on consumption. The survey elicits individual-level indicators of fear of contagion, distinguishing between worries while working, shopping, traveling, eating out and meeting relatives or friends. We find that the probabilities of consumption drops and increased saving after the pandemics are positively associated to fear of contagion, particularly while shopping. Income uncertainty also c ...[more]

PMID: 34962332

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