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A Grant to Every Citizen: Survey Evidence of the Impact of a Direct Government Payment in Israel

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  • Naomi Feldman
  • Ori Heffetz

Abstract

During the 2020 COVID-19 recession, Israel disbursed one-time, universal grants of $220 per adult and $150 per child. We ask survey respondents about the grant’s primary effect on their situation. Twenty to 45 percent report increasing spending, and 36–52 percent report reducing debts. Importantly, as many respondents report donating or helping friends or family as increasing saving (10–18 percent). While financially weaker respondents reduce debt more, stronger ones not only increase saving but also increase giving — a new finding of nonnegligible, voluntary, decentralized reallocation of governmental assistance. We explore how Israel’s political situation and our methodology may have affected our findings, helped by a follow-up US survey.

Suggested Citation

  • Naomi Feldman & Ori Heffetz, 2022. "A Grant to Every Citizen: Survey Evidence of the Impact of a Direct Government Payment in Israel," National Tax Journal, University of Chicago Press, vol. 75(2), pages 229-263.
    • Handle: RePEc:ucp:nattax:doi:10.1086/719449
    DOI: 10.1086/719449
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    Cited by:

    1. Bessho, S., 2023. "Elections and COVID-19 benefit payments," Journal of Asian Economics, Elsevier, vol. 87(C).

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