In this paper, we investigate how a transitory lockdown of a sector of the economy may have changed our habits and, therefore, altered the goods’ demand permanently. In a two-sector infinite horizon economy, we show that the demand of the goods produced by the sector closed during the lockdown could shrink or expand with respect to their pre-pandemic level depending on the lockdown’s duration and the habits’ strength. We also show that the end of a lockdown may be characterized by a price surge due to a combination of strong demand of both goods and rigidities in production.
Habits and demand changes after COVID-19 / Bambi, Mauro; Ghilli, Daria; Gozzi, Fausto; Leocata, Marta. - In: JOURNAL OF MATHEMATICAL ECONOMICS. - ISSN 0304-4068. - 110:(2024), pp. 1-13. [10.1016/j.jmateco.2023.102933]
Habits and demand changes after COVID-19
Ghilli, Daria;Gozzi, Fausto;Leocata, Marta
2024
Abstract
In this paper, we investigate how a transitory lockdown of a sector of the economy may have changed our habits and, therefore, altered the goods’ demand permanently. In a two-sector infinite horizon economy, we show that the demand of the goods produced by the sector closed during the lockdown could shrink or expand with respect to their pre-pandemic level depending on the lockdown’s duration and the habits’ strength. We also show that the end of a lockdown may be characterized by a price surge due to a combination of strong demand of both goods and rigidities in production.
| File | Dimensione | Formato | |
|---|---|---|---|
|
BambiGhilliGozziLeocataJME2023.pdf
Open Access
Tipologia:
Versione dell'editore
Licenza:
Creative commons
Dimensione
682.86 kB
Formato
Adobe PDF
|
682.86 kB | Adobe PDF | Visualizza/Apri |
Pubblicazioni consigliate
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
