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The revenue and welfare implications of digital coupon stimulus programs

Author

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  • Chen, Ying
  • Mao, Jiaming
  • Wang, Yue

Abstract

This study examines the impact of digital coupon programs on local businesses, using a large-scale program in Ningbo, China as a case study. Based on a regression discontinuity design, we find digital coupons to be a cost-effective method for local governments to generate immediate excess earnings for businesses during economic downturns. However, the impact was temporary and unevenly allocated. The majority of the excess revenues generated by the program went to large businesses, while small businesses benefited more on a percentage basis. Evaluating the distributional and welfare consequences of the program, we find that it led to both an improvement in total welfare for local businesses and a reduction in their revenue and welfare inequality.

Suggested Citation

  • Chen, Ying & Mao, Jiaming & Wang, Yue, 2025. "The revenue and welfare implications of digital coupon stimulus programs," China Economic Review, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:chieco:v:91:y:2025:i:c:s1043951x25000549
    DOI: 10.1016/j.chieco.2025.102396
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    More about this item

    Keywords

    Fiscal stimulus program; Digital coupon; Inequality;
    All these keywords.

    JEL classification:

    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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