Economic Impact of Targeted Government Responses to COVID-19: Evidence from the First Large-scale Cluster in Seoul

25 Pages Posted: 10 Aug 2020

See all articles by Jinwook Shin

Jinwook Shin

Seoul National University, Department of Economics, Seoul National University, Department of Economics, Students

Seonghoon Kim

Singapore Management University

Kanghyock Koh

Korea University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 5, 2020

Abstract

We estimate the economic impact of South Korea’s targeted responses to the first large-scale COVID-19 cluster in Seoul. We find that foot traffic and retail sales decreased only within a 300 meter radius of the cluster and recovered to its pre-outbreak level after four weeks. The reductions appear to be driven by temporary business closures rather than the risk avoidance behavior of the citizens. Our results imply that less intense, but more targeted COVID-19 interventions, such as pin-pointed, temporary closures of businesses, can be a low-cost alternative after lifting strict social distancing measures.

Keywords: COVID-19, pandemic, information disclosure, risk avoidance, foot traffic, retail sales, cell phone signal data, card transaction data

JEL Classification: E2, H12, I12, I18

Suggested Citation

Shin, Jinwook and Kim, Seonghoon and Koh, Kanghyock, Economic Impact of Targeted Government Responses to COVID-19: Evidence from the First Large-scale Cluster in Seoul (August 5, 2020). Available at SSRN: https://ssrn.com/abstract=3667700 or http://dx.doi.org/10.2139/ssrn.3667700

Jinwook Shin

Seoul National University, Department of Economics, Seoul National University, Department of Economics, Students ( email )

Korea, Republic of (South Korea)

Seonghoon Kim

Singapore Management University ( email )

90 Stamford Road
178903
Singapore
6568085465 (Phone)

Kanghyock Koh (Contact Author)

Korea University - Department of Economics ( email )

145 Anam-ro Seongbuk-gu
Seoul, Seoul 02841
Korea, Republic of (South Korea)

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