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Did Japan's shopping coupon program increase spending?

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  • Hsieh, Chang-Tai
  • Shimizutani, Satoshi
  • Hori, Masahiro

Abstract

In March 1999, 31Â million "shopping coupons" worth 20,000Â yen each were distributed to Japanese families with children and to the elderly. The coupons expired after six months and could only be used within the recipient's local community. We use variation in the number of children across families and in the number of recipients across prefectures to measure the effect of the coupons on spending. We find that coupons had a positive effect on spending on semi-durables, but no effect on spending on nondurables or services. The marginal propensity to consume on semi-durables was 0.1-0.2 when the coupons were distributed in March. The results using regional variation provide stronger evidence that spending did not fall after the coupons had been redeemed.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 94 (2010)
Issue (Month): 7-8 (August)
Pages: 523-529

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Handle: RePEc:eee:pubeco:v:94:y:2010:i:7-8:p:523-529

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Web page: http://www.elsevier.com/locate/inca/505578

Related research

Keywords: Shopping coupons Tax cuts Life-cycle model;

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Cited by:
  1. Christiaensen , Luc & Pan, Lei, 2012. "On the fungibility of spending and earnings -- evidence from rural China and Tanzania," Policy Research Working Paper Series 6298, The World Bank.
  2. Luc Christiaensen & Lei Pan, 2010. "Transfers and Development: Easy Come, Easy Go?," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) wp2010-125, World Institute for Development Economic Research (UNU-WIDER).
  3. Orazio P. Attanasio & Guglielmo Weber, 2010. "Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy," NBER Working Papers 15756, National Bureau of Economic Research, Inc.

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