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Assessing the Impact of
Business Closures on
COVID-19 Outcomes
Xuequan Elsie Peng and Chima Simpson-Bell
WP/22/ 139
IMF Working Papers describe research in
progress by the author(s) and are published to
elicit comments and to encourage debate.
The views expressed in IMF Working Papers are
those of the author(s) and do not necessarily
represent the views of the IMF, its Executive Board,
or IMF management.
2022
JUL
© 2021 International Monetary Fund WP/22/139
IMF Working Paper
Statistics Department
Assessing the Impact of Business Closures on COVID-19 Outcomes
Prepared by Xuequan Elsie Peng and Chima Simpson-Bell*
Authorized for distribution by Carlos Sánchez-Muñoz
July 2022
IMF Working Papers describe research in progress by the author(s) and are published to elicit
comments and to encourage debate. The views expressed in IMF Working Papers are those of the
author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
ABSTRACT: In this paper, we present a framework for assessing the effectiveness of different business
closure policies, using New York City as a case study. Business closure policies have been widely
implemented in an attempt to slow down the pandemic, but it is difficult to measure the contribution of closures
of specific industries to virus transmission. Our framework allows us to estimate the impact of specific industry
closures on the spread of COVID-19 via their effects on aggregate mobility. We find that early reopening led to
a prolonged pandemic and a large case surge in the second wave during 2020, though the reopening allowed
the city to regain its eco
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