The effect of the pandemic and Non-Pharmaceutical Interventions on household consumption

The effect of the pandemic and Non-Pharmaceutical Interventions on household consumption The effect of the pandemic and Non-Pharmaceutical Interventions on household consumption During the pandemic, Most of the short-run decline in consumption has depended on consumption during the first the health risks and the non- wave was a voluntary response pharmaceutical interventions to the health risks. [...] CPB BACKGROUND DOCUMENT – The effect of the pandemic and Non-Pharmaceutical Interventions on household consumption Page 3 of 10 Figure 1 Short and long-run effects of non-pharmaceutical interventions Whether this hypothetical package of NPIs has a net positive or negative effect on consumption over the period until a vaccine arrives depends on the difference between the path of the red line and th. [...] As the number of infections fell, consumption increased CPB BACKGROUND DOCUMENT – The effect of the pandemic and Non-Pharmaceutical Interventions on household consumption Page 4 of 10 before the NPIs were gradually removed (in the stylised figure all of the NPIs are removed at once). [...] Given that there are 355 municipalities in the Netherlands and that at the peak of the first wave over 400 people were CPB BACKGROUND DOCUMENT – The effect of the pandemic and Non-Pharmaceutical Interventions on household consumption Page 5 of 10 admitted to hospital every day, these results suggest that most of the decline in consumption in the first wave can be attributed to voluntary changes in. [...] At this point in time there would appear to be a consensus in the literature from a wide range of countries that voluntary changes in behaviour explain the majority of the fall in consumption and economic activity in the first wave.