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Recovering from the first Covid-19 lockdown: Economic impacts of the UK's Eat Out to Help Out scheme

Author

Listed:
  • Nicolás González-Pampillón
  • Gonzalo Nunez-Chaim
  • Katharina Ziegler
Abstract
We evaluate some of the economic impacts of the UK's Eat Out to Help Out (EOTHO) scheme on the food service sector. EOTHO subsidised the cost of eating out, with a 50% discount Mondays to Wednesdays in August 2020. We exploit the spatial variation in take-up using a continuous difference-in-differences approach. We measure the effect on footfall using mobility data from Google and on employment using job posts from Indeed. Our estimates indicate that footfall in retail & recreation increased by 5%-6%, while job posts in the food preparation & service industry increased by 7%-14%. These effects are transitory, and we do not find evidence of spillover benefits to non-recreational activities or other sectors. Further research is needed to assess the cost-effectiveness of EOTHO and similar programmes for boosting aggregate demand and supporting economic recovery after COVID-19 lockdowns.

Suggested Citation

  • Nicolás González-Pampillón & Gonzalo Nunez-Chaim & Katharina Ziegler, 2021. "Recovering from the first Covid-19 lockdown: Economic impacts of the UK's Eat Out to Help Out scheme," CEP Covid-19 Analyses cepcovid-19-018, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepcvd:cepcovid-19-018
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    References listed on IDEAS

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    Cited by:

    1. Solórzano Diego, 2023. "Grab a Bite? Prices in the food away from home industry during the COVID-19 pandemic," Working Papers 2023-18, Banco de México.

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    More about this item

    Keywords

    Consumption subsidy; COVID-19; difference-in-differences; footfall; job posts;
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