Impact of Easing Restrictions on Restaurant Inflation: Normalization Processes in Türkiye during COVID-19
| Title: | Impact of Easing Restrictions on Restaurant Inflation: Normalization Processes in Türkiye during COVID-19 | |
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Number: |
23/03 |
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Author(s): |
Ceren Eldemir, Serdar Yürek | |
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Language: |
English | |
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Date: |
October 2023 |
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Abstract: |
Among the measures implemented in Türkiye during the COVID-19 pandemic, extensive restrictions were applied for restaurants, such as prohibitions regarding dine-in services. As the pandemic was brought under control to a certain degree, restrictions were loosened and normalization processes were begun. In this study, we estimate the causal impact of those normalization processes on restaurant pricing via regression discontinuity design. During the normalization processes that have begun following three main periods of restrictions, an increase of approximately 1.11% and 1.37% in the prices of food services occurred for the first and third normalization periods, respectively, whereas no significant impact is found for the second period. | |
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Keywords: |
Firm behaviour, Inflation, Microeconometrics | |
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JEL Codes: |
L20; E31; C50 | |