Liquidity Shortfalls during the COVID-19 Outbreak: Assessment and Policy Responses

• DOI: 10.24187/ecostat.2022.532.2070
• Publication Date: 2022-07-11T07:13:07Z
• Authors: Lilas Demmou; Guido Franco; Sara Calligaris; Dennis Dlugosch
• Keywords: 2019-20 coronavirus outbreak

We study the impact of health crisis on activity more than 645,000 French companies using individual data to estimate their monthly turnover.Our microsimulation model is innovative in three ways.First, we quantify loss with respect a non-crisis counterfactual situation take into account companies' growth trajectories before pandemic when discussing consequences crisis.Second, this shock at level heterogeneity business.We highlight disparities both between and within sectors.The sector explains up 48% variance shocks observed 2020, much larger proportion normal year.Finally, identify four profiles 2020.The industry primary determinant belonging these profiles.Conditionally sector, are also correlated organisational adaptation companies.