Importance-Satisfaction Analysis of the Local Festival according to the consumer spending behavior for free and paid visitors - Focused on the Namyangju Slow Life International Festival visitors -

Rising infrastructure costs for water providers and the rising cost of water for households pose several challenges for water providers, policy makers, and the research community. Consumers may utilize several strategies for coping with rising water costs including reduced water use or spending reductions on other household goods and services. To provide a first glance at the link between rising water bills and consumer spending, this study analyzes data from a household survey in the United States to understand how consumers may change spending behavior given various water bill increase scenarios. Results of this analysis provide insights into the demographics of households likely to be affected, the industries that could be affected, and at what bill increase levels these trends are most pronounced. While additional research on this topic is needed, these results suggest a stronger emphasis on long-term water management planning and allocation of resources to building and maintaining water infrastructure may be required. For utilities, this means a consideration of nonrevenue sources of funds to pay for rising water costs and strategies for making water more affordable for customers without deferring infrastructure improvements.

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When the Pandemic Creates Behavioral Changes and Economic Crisis: The COVID-19 Pandemic and the Implications for Policy Making

Journal of Student Research ◽

10.47611/jsrhs.v10i3.1673 ◽

2021 ◽

Vol 10 (3) ◽

Author(s):

Ava Chae ◽

Janet Hanson

Keyword(s):

Regression Discontinuity ◽

Aggregate Demand ◽

Basic Needs ◽

Psychological Theory ◽

Consumer Confidence ◽

Consumer Spending ◽

Health Crisis ◽

Spending Behavior ◽

The Government ◽

The U.S

The COVID-19 pandemic is no longer simply a “health crisis” but seems to have far-reaching impacts and implications as well. The pandemic has led to an unprecedented decline in consumer confidence (demand shock) as people quickly changed their spending behavior to focus on basic needs. In response, the government has taken actions to boost consumer confidence and spending through stimulus packages and other aid. This research uses a public database of private sector data with current information on consumer spending and employment and implements Abraham Maslow’s psychological theory, the hierarchy of needs, and Keynesian economics to explain consumer spending behaviors and the U.S. government’s response to the pandemic. Three hypotheses are developed and tested using regression analysis. First, the findings of the regression discontinuity show significantly higher spending in industries fulfilling basic needs than in nonessential sectors. Second, a causal relationship was found between aggregate demand, more specifically consumer spending, and employment, revealing the distinctness of the pandemic-caused recession driven by coronavirus fear. The final regression discontinuity was tested to observe the effect of stimulus checks (CARES Act) on spending and economic recovery, revealing positive impacts of boosting aggregate demand. This study provides evidence that while high-income households and individuals were the least impacted by the pandemic regarding employment, they showed the most dramatic changes in spending behavior. The study provides discussions and implications as to how to mitigate the effects of the COVID-19 recession in the U.S.

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