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Which industries will be in the best shape when we return?

Summary:
In the 2x2 table above from the Shrewd Samaratan, via MarginalRevolution, there are two dimensions:Purchases "Gone Forever," goods and services whose purchases were abandoned during the shutdown, vs. "Snap-Back," purchases that were postponed by the shutdown. Income Elasticity of Demand measures sensitivity of demand to income. High Income Elasticity, goods whose demand falls as income falls, vs Low Income Elasticity, goods whose demand is relatively insensitive to income.   The colors correspond to the outlook for each industry: Orange box:  lost profits from abandoned purchases, and low future demand because income has fallen. Green box: delayed profits from postponed purchases; and relatively high future demand. The two off diagonal boxes are in-between these two extremes: Blue

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Which industries will be in the best shape when we return?

In the 2x2 table above from the Shrewd Samaratan, via MarginalRevolution, there are two dimensions:

  • Purchases
    • "Gone Forever," goods and services whose purchases were abandoned during the shutdown, vs.
    • "Snap-Back," purchases that were postponed by the shutdown.
  • Income Elasticity of Demand measures sensitivity of demand to income.
    • High Income Elasticity, goods whose demand falls as income falls, vs
    • Low Income Elasticity, goods whose demand is relatively insensitive to income.  

The colors correspond to the outlook for each industry: 

  • Orange box:  lost profits from abandoned purchases, and low future demand because income has fallen.
  • Green box: delayed profits from postponed purchases; and relatively high future demand.

The two off diagonal boxes are in-between these two extremes: 

  • Blue lower-left box: lost profit from abandoned purchases, but relatively high future demand
  • Blue upper-right box:  delayed profits from postponed purchases, but relatively high future demand.

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