Recreation and social obligations during Covid in India: Does social distancing act as a barrier?

Abstract Using three‐stage least squares, the present study examines how the household expenditure on socialising activities, including eating out, entertainment and religious and social obligations changed during the COVID‐19 pandemic in India. Our results suggest a negative impact of COVID‐19 cases on the socialising expenditure shares of the households. Further, a higher spending on food is associated with a lower spending on socialising. We find that during the crisis, the increased food expenditures entails lower discretionary expenditures. Or, in other words, they are substitutes. A quadratic socialising expenditures curve confirms the expenditure variability and the wide‐ranging responses of households belonging to different income groups to the COVID‐19 induced economic shocks. The rising prices of food and other necessities required the households to spend larger shares of their incomes on necessary goods, and curtail the consumption of leisure goods. The role of maintaining a healthy work‐life balance, active social network as well as leisure activities to be content in life is well documented. Hence a reduced expenditure on socialising due to the pandemic, may throw light on some larger and significant concerns such as the deteriorating mental health of individuals and greater stress and frustration.