Habits and demand changes after COVID-19

Bambi, Mauro; Ghilli, Daria; Gozzi, Fausto; Leocata, Marta

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.

Citation

Bambi, M., Ghilli, D., Gozzi, F., & Leocata, M. (2024). Habits and demand changes after COVID-19. Journal of Mathematical Economics, 110, Article 102933. https://doi.org/10.1016/j.jmateco.2023.102933

• Journal Article Type: Article
• Acceptance Date: Nov 29, 2023
• Online Publication Date: Dec 6, 2023
• Publication Date: 2024-02
• Deposit Date: Jan 16, 2024
• Publicly Available Date: Jan 16, 2024
• Journal: Journal of Mathematical Economics
• Print ISSN: 0304-4068
• Electronic ISSN: 1873-1538
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 110
• Article Number: 102933
• DOI: https://doi.org/10.1016/j.jmateco.2023.102933
• Keywords: Applied Mathematics; Economics and Econometrics
• Public URL: https://durham-repository.worktribe.com/output/2147965