Income and Wealth Shocks and Expectations during the COVID-19 Pandemic

Hanspal, Tobin; Weber, Annika; Wohlfart, Johannes

doi:10.2139/ssrn.3577217

Cited by 9 publications

(3 citation statements)

References 56 publications

(56 reference statements)

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“…These numbers are similar to Hanspal et al (2020) who report average income losses of about $3,000 and wealth losses of about $50,000.…”

Section: B Direct Covid19 Impactssupporting

confidence: 84%

“…In a survey experiment on a US population, they find survey participants vastly overestimate the mortality rate and the contagiousness of the virus. Hanspal et al (2020) study the income and wealth loss in a survey and the impact on expectations about the economic recovery. Barrios and Hochberg (2020) and Allcott et al (2020) use internet searches, survey data, and travel data from smartphones to document that political partisanship determines the perception of risk associated with COVID19 and non-essential travel activity.…”

Section: Related Literaturementioning

confidence: 99%

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The Cost of the COVID-19 Crisis: Lockdowns, Macroeconomic Expectations, and Consumer Spending

2020

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We thank the National Science Foundation for financial support in conducting the surveys. We also thank Shannon Hazlett and Victoria Stevens at Nielsen for their assistance with the collection of the PanelViews Survey. Results in this article are calculated based on data from The Nielsen Company (US), LLC and marketing databases provided by the Kilts Center for Marketing Data Center at The University of Chicago Booth School of Business. Information on availability and access to the data is available at http://research.chicagobooth.edu/nielsen. We thank Peter McCrory for sharing data on the timing of lockdowns. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.N BER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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“…These numbers are similar to Hanspal et al (2020) who report average income losses of about $3,000 and wealth losses of about $50,000.…”

Section: B Direct Covid19 Impactssupporting

confidence: 84%

Section: Related Literaturementioning

confidence: 99%

The Cost of the COVID-19 Crisis: Lockdowns, Macroeconomic Expectations, and Consumer Spending

2020

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“…These effects have been found to be strong in many settings. See, e.g.,Bø, Halvorsen, and Thoresen (2019), Ring (2020),Zator (2020), andHanspal, Weber, andWohlfart (2020).…”

mentioning

confidence: 99%

Entrepreneurial Wealth and Employment: Tracing Out the Effects of a Stock Market Crash

Ring

2020

SSRN Journal

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I provide evidence that adverse shocks to the wealth of business owners during the Financial Crisis had large effects on their firms' financing, employment, and investment. I use individual-level portfolio data from Norway to exploit the dispersion in stock returns during 2008-09 as a source of exogenous variation in entrepreneurs' wealth. I then trace out the effects of these shocks to the entrepreneurs' privately-held firms. I find that the adverse employment and investment effects are primarily driven by young firms who-relative to mature firms-obtain considerably less bank financing following an owner wealth shock. Firms adjust employment primarily through hiring less, rather than firing, consistent with firms providing extensive-margin insurance for existing workers. These findings provide a causal link between asset price shocks and the real economy; and document that equity-financing frictions and the procyclicality of entrepreneurial wealth are important channels through which economic shocks amplify.

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Restarting “Normal” Life after Covid-19 and the Lockdown: Evidence from Spain, the United Kingdom, and Italy

et al. 2021

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In this article, we examine the expectations of the economic outlook, fear of the future, and behavioural change during the first Covid-19 wave, for three European countries (Spain, the United Kingdom, and Italy) that have been severely hit. We use a novel dataset that we collected to monitor the three countries during the crisis. As outcome variables, we used expectations (e.g., economic outlook, labour market situation, recovery), fear (e.g., scenario of new outburst, economic depression, restriction to individual rights and freedom), and behavioural change across the following dimensions: savings, cultural consumption, social capital, and risky behaviour. We provide descriptive evidence that is representative of the population of interest, and we estimate the impact of exposure to shock occurred during the crisis on the same outcome variables, using matching techniques. Our main findings are the following: we detected systematically negative expectations regarding the future and the recovery, majoritarian fears of an economic depression, a new outbreak, and a permanent restriction on freedom, a reduction in saving and in social capital. Exposure to shocks decreased expected job prospects, increased withdrawal from accumulated savings, and reduced contacts with the network relevant to job advancement, whereas it had inconclusive effects over fears. Supplementary Information The online version contains supplementary material available at 10.1007/s11205-021-02697-5.

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Income and Wealth Shocks and Expectations during the COVID-19 Pandemic

Cited by 9 publications

References 56 publications

The Cost of the COVID-19 Crisis: Lockdowns, Macroeconomic Expectations, and Consumer Spending

The Cost of the COVID-19 Crisis: Lockdowns, Macroeconomic Expectations, and Consumer Spending

Entrepreneurial Wealth and Employment: Tracing Out the Effects of a Stock Market Crash

Restarting “Normal” Life after Covid-19 and the Lockdown: Evidence from Spain, the United Kingdom, and Italy

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