4.6 Article

Closed for business: The mortality impact of business closures during the Covid-19 pandemic

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PLOS ONE
卷 16, 期 5, 页码 -

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PUBLIC LIBRARY SCIENCE
DOI: 10.1371/journal.pone.0251373

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The study shows that business shutdowns can effectively reduce mortality rates related to Covid-19. However, the effectiveness of the closures diminishes over time and extends beyond the closed businesses to impact other municipalities. Therefore, business shutdowns should be selectively implemented and centrally coordinated.
We investigate the effectiveness of business shutdowns to contain the Covid-19 disease. In March 2020, Italy shut down operations in selected sectors of its economy. Using a difference-in-differences approach, we find that municipalities with higher exposure to closed sectors experienced subsequently lower mortality rates. The implied life savings exceed 9,400 people over a period of less than a month. We also find that business closures exhibited rapidly diminishing returns and had large effects outside the closed businesses themselves, including spillovers to other municipalities. Overall, the results suggest business shutdowns are effective, but should be selectively implemented and centrally coordinated.

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