Abstract
This article analyzes and compares changes in liquor sales across urban and rural markets that occurred in response to COVID-19 pandemic and the associated shutdown policies. The data includes every liquor sales transaction, by type (retail store vs. bars and restaurants), month, and location in the State of Idaho. The data facilitates an analysis of the differential dynamic effects of COVID-19 on sales through retail and wholesale (i.e., bars and restaurants) market channels differentiated by urban and rural regions, estimated at the individual-outlet level. Controlling for persistent seasonal fluctuations in liquor consumption, retail liquor sales surged during the peak of the stay-at-home policies, while bar and restaurant sales declined markedly. As bars and restaurants began to reopen, substantial differences occurred between urban and rural areas, including the persistence of reduced sales to bars and restaurants. This suggests that statewide pandemic policies, which were more focused on addressing conditions in urban areas, may have benefitted from greater regional differentiation tailored to idiosyncrasies of rural populations.
•We analyze changes in liquor sales across urban and rural markets in response to COVID policies.•Our data includes all sales transactions by type, month, and location in the State of Idaho.•We compare retail and wholesale market channels differentiated by urban and rural regions.•Retail liquor sales surged during stay-at-home policies, while bar and restaurant sales declined.•As Bars and restaurants reopened, differences in recovery occurred between urban and rural areas.