Research Interests: Political Economy, Structural Transformation, Labor Economics
Do political conflicts matter for everyday consumption behavior?
Evidence from the US-China trade conflict (with Lukas Jürgensmeier)
Political conflicts influence the decision-making of politicians, businesses, and voters. We investigate how daily consumption reacts to political conflicts using data on visits to nearly 200,000 restaurants across the US. Exploiting the variation in news coverage about the recent US-China trade conflict, we estimate that a week-long one standard deviation increase in daily reporting negativity about China leads to around 3.2% fewer daily visits to the average Chinese restaurant. Further, we show that visits to other foreign restaurants also decrease significantly, while establishments specializing in typical American food experience increased visitor numbers.