Abstract:In this paper, we investigate the effect of an epidemic outbreak on consumer expenditures. In light of scanner panel data on consumers' debit and credit card transactions, we present empirical evidence that outbreaks cause considerable disruption in total consumer expenditures with significant heterogeneity across categories. Our findings strongly imply that customers alter their behaviors to reduce the risk of infection. The estimated effect of an epidemic outbreak is qualitatively different from that of other macroeconomic factors. The implications of this research provide important guidance for policy interventions and marketing decisions aimed at sustaining economic growth.
We derive the large deviation principle for radial Schramm-Loewner evolution (SLE) on the unit disk with parameter κ → ∞. Restricting to the time interval [0, 1], the good rate function is finite only on a certain family of Loewner chains driven by absolutely continuous probability measures {φ 2 t (ζ) dζ} t∈[0,1] on the unit circle andOur proof relies on the large deviation principle for the long-time average of the Brownian occupation measure by Donsker and Varadhan.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.