Publication Type
Working Paper
Version
publishedVersion
Publication Date
9-2020
Abstract
Various countries have implemented transfer programs to individuals since the Covid-19 outbreaks. However, the extent to which such transfers alleviate economic recessions is unclear. This paper analyzes a South Korean program, which provided vouchers redeemable only at small local businesses. We find that, due to the program, over 30% of households across all income groups increased their food and overall household spending, but the usage restriction may have affected consumer choice, distorting business competition. While the employment and sales of small businesses improved, the program’s fiscal sustainability is in question because of the large tax exemption.
Keywords
COVID-19, stimulus payment, universal transfers, consumption, distortion
Discipline
Asian Studies | Behavioral Economics | Public Health
Research Areas
Applied Microeconomics
First Page
1
Last Page
16
Identifier
10.2139/ssrn.3701676
Publisher
Institute of Labor Economics, Discussion Paper Series, No. 13567
City or Country
Bonn
Citation
1
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.3701676