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Regional and sectorial impacts of the Covid-19 crisis: Evidence from electronic payments
Bruno P Carvalho1,2, Susana Peralta3, João Pereira Dos Santos3
1Department of Economics Universidad Carlos III de Madrid Madrid Spain.
Abstract:
We use novel and comprehensive monthly data on electronic payments, by municipality and sector, together with cash withdrawals, to study the impact of Covid-19 in Portugal. Our difference-in-differences event study identifies a causal decrease of 17 and 40 percentage points on the year-on-year growth rate of overall purchases in March and April 2020. We document a stronger impact of the crisis in more central and more urban municipalities, due to a combination of the sectorial composition effect of the local economy and the sharper confinement behavioral effect in these locations. We discuss the importance of tourism for the results.
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