Fear of Covid-19 contagion: The idiosyncratic effects of an aggregate pandemic shock

We examine how the fear of COVID-19 contagion influences consumer expenditure patterns. We show that the consumption expenditure responses to the spread of the COVID-19 pandemic are significantly heterogeneous across generations. We find that the elderly spend less than the younger generation by at least 5% as COVID-19 spread. In fact, those aged above 60 significantly decreased their spending even on food and drink products by 13%. We also find that the elderly forgo shopping in favor of the younger generation. These heterogeneous responses are likely to be due to the fear of the COVID-19 infection.