The Impact of an Epidemic Outbreak on Consumer Expenditures:An Empirical Assessment for MERS Korea

The Impact of an Epidemic Outbreak on Consumer Expenditures:An Empirical Assessment for MERS Korea

Hojin Jung, Minjae Park, KiHoon Hong, Eunjung Hyun

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.

2016

Epidemic outbreak, sustainable growth, consumption expenditures, channel distribution

DOI: 10.3390/su8050454

Sustainability

MDPI AG

Environmental sciences, Renewable energy sources, Environmental effects of industries and plants

EN