Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/224009
Authors: 
Kim, Moon Jung
Lee, Soohyung
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13567
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.
Subjects: 
COVID-19
stimulus payment
universal transfers
consumption
distortion
JEL: 
H2
H6
D3
D6
L1
Document Type: 
Working Paper

Files in This Item:
File
Size
529.08 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.