Discussion Paper

Are Financially Distressed Areas More Affected by COVID-19?

Abstract: Building upon our earlier Liberty Street Economics post, we continue to analyze the heterogeneity of COVID-19 incidence. We previously found that majority-minority areas, low-income areas, and areas with higher population density were more affected by COVID-19. The objective of this post is to understand any differences in COVID-19 incidence by areas of financial vulnerability. Are areas that are more financially distressed affected by COVID-19 to a greater extent than other areas? If so, this would not only further adversely affect the financial well-being of the individuals in these areas, but also the local economy. This post is the first in a three-part series looking at heterogeneity in the credit market as it pertains to COVID-19 incidence and CARES Act debt relief.

Keywords: COVID-19; delinquency; auto loan; student loans; mortgage; credit cards;

JEL Classification: D14; Q12;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2020-08-17

Number: 20200817

Note: Heterogeneity Series IV: COVID-19 and Credit Market Outcomes