Economic impact of targeted government responses to COVID-19: Evidence from the large-scale clusters in Seoul

Jinwook Shin, Seonghoon Kim, Kanghyock Koh

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

We estimate the economic impact of South Korea's targeted responses to the large-scale COVID-19 clusters in a highly concentrated business area (Guro) and a highly concentrated entertainment area (Itaewon) in Seoul, respectively. We find that foot traffic and retail sales decreased only within a 300 m radius and recovered to their pre-outbreak level after four weeks in the case of the Guro cluster. The reductions appear to be driven by temporary business closures rather than by citizens' risk avoidance behavior. However, the adverse economic impacts measured by foot traffic and retail sales of another outbreak of the COVID-19 cluster in Itaewon were persistent. Our results imply that the effects of less intense but more targeted COVID-19 interventions, such as pinpointed, temporary closures of businesses, can differ by underlying geographical characteristics.

Original languageEnglish
Pages (from-to)199-221
Number of pages23
JournalJournal of Economic Behavior and Organization
Volume192
DOIs
Publication statusPublished - 2021 Dec

Keywords

  • COVID-19
  • Card transaction data
  • Foot traffic
  • Information disclosure
  • Retail sales
  • Risk avoidance

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

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