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Consumption Response to Seoul’s COVID-19 Shopping Coupons: Evidence from Consumer Data (Covid-19 Special Issue)

Author

Listed:
  • Seokjin Woo

    (Myongji University)

  • Sangmin Aum

    (Kyung Hee University)

  • Dohyung Kim

    (Myongji University)

  • Heyjin Moon

    (Seoul Welfare Foundation)

  • Soohyung Lee

    (Seoul National University)

Abstract

This study measures the extent to which Seoul’s COVID-19 shopping coupon program affects individuals’ consumption. Unlike other COVID-19-related transfer programs, the Seoul Metropolitan government provides consumption coupons depending on income. We quantify the causal effect of Seoul’s program by comparing eligible and ineligible groups using a difference-in-differences method. We find that the program increased consumption by 18% while it was ongoing and by 6% afterward. We find substantial heterogeneity in the treatment effects concerning recipients’ income and consumption categories.

Suggested Citation

  • Seokjin Woo & Sangmin Aum & Dohyung Kim & Heyjin Moon & Soohyung Lee, 2022. "Consumption Response to Seoul’s COVID-19 Shopping Coupons: Evidence from Consumer Data (Covid-19 Special Issue)," Korean Economic Review, Korean Economic Association, vol. 38, pages 231-250.
    • Handle: RePEc:kea:keappr:ker-20220401-38-2-01
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    References listed on IDEAS

    as
    1. Olivier Coibion & Yuriy Gorodnichenko & Michael Weber, 2020. "How Did U.S. Consumers Use Their Stimulus Payments?," Working Papers 2020-109, Becker Friedman Institute for Research In Economics.
    2. Scott R. Baker & Robert A Farrokhnia & Steffen Meyer & Michaela Pagel & Constantine Yannelis, 2023. "Income, Liquidity, and the Consumption Response to the 2020 Economic Stimulus Payments," Review of Finance, European Finance Association, vol. 27(6), pages 2271-2304.
    3. Nam, Minhyuk & Lee, Soohyung, 2021. "COVID-19 and Employment in South Korea: Trends and Comparison with the 2008 Financial Crisis," IZA Discussion Papers 14101, Institute of Labor Economics (IZA).
    4. Kim, Moon Jung & Lee, Soohyung, 2020. "Can Stimulus Checks Boost an Economy under COVID-19? Evidence from South Korea," IZA Discussion Papers 13567, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; Stimulus Payment; Consumption;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • D3 - Microeconomics - - Distribution
    • D6 - Microeconomics - - Welfare Economics
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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