Coronavirus Perceptions and Economic Anxiety Fetzer, Thiemo; Hensel, Lukas; Hermle, Johannes ...
The review of economics and statistics,
12/2021, Letnik:
103, Številka:
5
Journal Article
Recenzirano
Odprti dostop
We provide one of the first systematic assessments of the development and
determinants of economic anxiety at the onset of the coronavirus pandemic. Using
a global data set on internet searches and ...two representative surveys from the
United States, we document a substantial increase in economic anxiety during and
after the arrival of the coronavirus. We also document a large dispersion in
beliefs about the pandemic risk factors of the coronavirus and demonstrate that
these beliefs causally affect individuals' economic anxieties. Finally,
we show that individuals' mental models of infectious disease spread
understate nonlinear growth and shape the extent of economic anxiety.
The economic crisis associated with the emergence of the novel corona virus is unlike standard recessions. Demand for workers in high contact and inflexible service occupations has declined while ...parental supply of labor has been reduced by lack of access to reliable child care and in-person schooling options. This has led to a substantial and persistent drop in employment and labor force participation for women, who are typically less affected by recessions than men. We examine real-time data on employment, unemployment, labor force participation and gross job flows to document the impact of the pandemic by occupation, gender and family status. We also discuss the potential long-term implications of this crisis, including the role of automation in depressing the recovery of employment for the worst hit service occupations.
Abstract
We document extreme disruption in debt markets during the COVID-19 crisis: a severe price crash accompanied by significant dislocations at the safer end of the credit spectrum. ...Investment-grade corporate bonds traded at a discount to credit default swaps; exchange-traded funds traded at a discount to net asset value, more so for safer bonds. The Federal Reserve’s announcement of corporate bond purchases caused these dislocations to disappear and prices to recover. These facts inform potential theories of the disruption. The best explanation is an acute liquidity need for specific bond investors, such as mutual funds, leading them to liquidate large positions.
Abstract
We study liquidity conditions in the corporate bond market during the COVID-19 pandemic. We document that the cost of trading immediately via risky-principal trades dramatically increased at ...the height of the sell-off, forcing customers to shift toward slower agency trades. Exploiting eligibility requirements, we show that the Federal Reserve’s corporate credit facilities have had a positive effect on market liquidity. A structural estimation reveals that customers’ willingness to pay for immediacy increased by about 200 bps per dollar of transaction, but quickly subsided after the Fed announced its interventions. Dealers’ marginal cost also increased substantially but did not fully subside.
How Did Depositors Respond to COVID-19? Levine, Ross; Lin, Chen; Tai, Mingzhu ...
The Review of financial studies,
11/2021, Letnik:
34, Številka:
11
Journal Article
Recenzirano
Odprti dostop
Abstract
Why did banks experience massive deposit inflows during the pandemic? We discover that deposit interest rates at bank branches in counties with higher COVID-19 infection rates fell by more ...than rates at branches—even branches of the same bank—in counties with lower infection rates. Credit drawdowns, national policies, such as the Payment Protection Program, and a flight-to-safety do not account for these cross-branch changes in deposit rates. Evidence suggests that higher local COVID-19 infection rates are associated with households’ greater anxiety about future job and income losses, anxiety that induces households to reduce spending and increase deposits.
At the height of the COVID‐19 pandemic in the United Kingdom, the Governor of the Bank of England, while granting an interview, described the pandemic as an unprecedented economic emergency and said ...that the Bank could go as far as radical money‐printing operations. In reaction, the UK financial market, particularly the FTSE 100 and pound sterling, witnessed record‐breaking losses. Considering this evidence, we hypothesized that the emotions and moods of investors towards the financial market might have been impacted by the information they obtained from frequent government policy announcements. Furthermore, we proposed that the United Kingdom's final exit from the European Union (Brexit), which coincided with the pandemic, could have worsened the outlook of the UK financial market, as investors began to diversify their portfolios. Consequently, we examined the impact of government's policy announcements on investors’ reactions to the concurrence of the COVID‐19 pandemic and Brexit. Our findings reveal that the psychology of investors during the pandemic was significantly shaped by frequent policy announcements, which in turn affected overall market behaviour.
In this paper I discuss the increasingly prominent role of administrative micro data in macroeconomics research. This type of data proved important for interpreting the causes and consequences of the ...Great Recession, and it has played a crucial role in shaping economists' understanding of the COVID-19 pandemic in near real-time. I discuss a number of specific insights from this research while also illustrating some of the broader opportunities and challenges of working with administrative data.
The total polysaccharide content of the sugar-rich filamentous microalga
Tribonema minus
(Xanthophyceae, Tribonematales) under 2% CO
2
was up to 50%. The optimal conditions for the extraction of ...polysaccharide by hot water extraction-ethanol deposition were as follows: A maximum polysaccharide yield of 27.25% was obtained under the optimized conditions of extraction temperature 80°C, extraction time of 2 h, pH 9, and liquid to raw material 0.5:1 mL mg
−1
. The crude polysaccharides were mainly acidic polysaccharides containing sulfate groups and uronic acid, and the contents of which were 14.57% and 42.21 mg g
−1
, respectively. The crude polysaccharide was mainly composed of rhamnose, arabinose, xylose, mannose, glucose, and galactose with a molar ratio of 0.31:0.26:0.40:0.42:1.00:0.47. In addition, the polysaccharide had a potential antioxidant activity in vitro. The scavenging effect and reducing power of polysaccharides increased with the increase of polysaccharide concentration. The scavenging effect was 56.11%, 75.6%, and 61.89% for 1,1-diphenyl-2-picrylhydrazyl free radical (DPPH), superoxide, and hydroxyl radicals at a concentration of 2 mg L
−1
, respectively. Hence,
T. minus
polysaccharides could be a source of natural antioxidants that might be used in foods or pharmaceuticals.
Abstract
Liquidity restrictions on investors, like the redemption gates and liquidity fees introduced in the 2016 money market fund (MMF) reform, are meant to improve financial stability. However, we ...find evidence that such liquidity restrictions exacerbated the run on prime MMFs during the COVID-19 crisis. Our results indicate that gates and fees could generate strategic complementarities among investors in crisis times. Severe outflows from prime MMFs led the Federal Reserve to intervene with the Money Market Mutual Fund Liquidity Facility (MMLF). Using MMLF microdata, we show how the provision of “liquidity of last resort” stabilized prime funds.
The COVID‐19 pandemic has accelerated the introduction of working from home (WFH), but it has not been verified how it affects corporate performance, and many companies are still hesitant to ...introduce WFH. In this study, service companies were divided into a group that introduced WFH and a group that did not introduce WFH during the COVID‐19 pandemic, and the technical efficiencies of the two groups were compared through meta‐frontier analysis. As a result, the WFH group had a lower technical efficiency (TE) but a higher meta‐technology ratio (MTR) than the group that did not introduce WFH, suggesting that the introduction of WFH can be positive for improving corporate performance in the long run.
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