An Analysis of Stockpiling Behavior at the Onset of the COVID-19 Pandemic

Excessive stockpiling due to panic buying during emergencies such as natural disasters and pandemics can increase pressure on supply chains and exacerbate supply shortages. This study uses household level purchase data from the United States to analyze the extent of stockpiling on dry food (rice and pasta) at the onset of the COVID-19 pandemic period in March 2020. The results show significant differences in the extent and timing of stockpiling among different demographic groups. Among the elderly and low-income households, the increase in purchases is substantially smaller and occurs with a lag compared to other population groups, suggesting that these vulnerable populations may be at a particular disadvantage in accessing essential goods during a crisis. The managerial and public policy implications of this "stockpiling inequality" are discussed.