Support Policies for Small Businesses During the Covid-19 Crisis: Evidence from Club Convergence Clustering Approach

Abstract

This paper examines the small business net revenue club convergence clustering dynamics in 51 states in the United States during the first wave of the Covid-19 pandemic. Our analysis is based on the daily data from January 10, 2020, to June 8, 2020. The results indicate that there was only one club convergence for all states during the first wave of the Covid-19 pandemic. This evidence implies that the support policies enacted during the Covid-19 crisis for small and medium-sized enterprises were effective.