IDEAS home Printed from
   My bibliography  Save this paper

Aid Distribution During the COVID-19 Crisis


  • Alvin Ang

    (Department of Economics, Ateneo de Manila University)

  • Ser Percival Pena-Reyes

    (Department of Economics, Ateneo de Manila University)


This paper highlights a large informal economy, a low propensity to save and invest, and widespread financial exclusion as factors that expose Filipinos to financial vulnerability. These factors could, in turn, make the distribution of government aid all the more challenging in the midst of the COVID-19 crisis. The sheer number of displaced informal economy workers, combined with economy-wide low savings and investment rates, would call for a massive amount of financial aid. Because of widespread financial exclusion, cash handouts are probably the quickest way to deliver the aid, which would expose local government units (LGUs) to considerable risks of wrong targeting, late delivery, and incomplete accounting. To ease the burden on LGUs, at least on the accounting aspect, it might be beneficial to consider enlisting the services of other channels, such as microfinance institutions, pawnshops, payment centers, and domestic money transfer service providers, to assist in the distribution of financial aid. Consumer awareness of these facilities appears to be high among the masses. Also, by involving the private sector, the government can take advantage of the efficiency of existing systems. The administrative costs to deliver the funds can be reduced, and the funds can also reach the beneficiaries faster.

Suggested Citation

  • Alvin Ang & Ser Percival Pena-Reyes, 2020. "Aid Distribution During the COVID-19 Crisis," Department of Economics, Ateneo de Manila University, Working Paper Series 202006, Department of Economics, Ateneo de Manila University.
  • Handle: RePEc:agy:dpaper:202006

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Au, Pak Hung & Kawai, Keiichi, 2020. "Competitive information disclosure by multiple senders," Games and Economic Behavior, Elsevier, vol. 119(C), pages 56-78.
    2. World Bank, 2020. "Global Economic Prospects, January 2020," World Bank Publications, The World Bank, number 33044.
    3. Lane P. Hughston & Leandro S'anchez-Betancourt, 2020. "Pricing with Variance Gamma Information," Papers 2003.07967,, revised Sep 2020.
    4. World Bank, 2020. "Global Financial Development Report 2019/2020," World Bank Publications, The World Bank, number 32595.
    5. Joop Adema & Yvonne Giesing & Julia Gorochovskij & Tanja Stitteneder, 2020. "Innovation – Global Trends and Regulation," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(04), pages 45-54, January.
    6. Benigno, Gianluca & Fornaro, Luca & Wolf, Martin, 2020. "The Global Financial Resource Curse," CEPR Discussion Papers 14441, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hadzi-Vaskov, Metodij & Pienknagura, Samuel & Ricci, Luca Antonio, 2021. "The Macroeconomic Impact of Social Unrest," CEPR Discussion Papers 16152, C.E.P.R. Discussion Papers.
    2. Riccardo Settimo & Raffaele De Marchi, 2021. "Will multilateral development banks weather the Covid-19 crisis?," Questioni di Economia e Finanza (Occasional Papers) 598, Bank of Italy, Economic Research and International Relations Area.
    3. World Bank, . "South Caucasus and Central Asia - The Belt and Road Initiative," World Bank Other Operational Studies, The World Bank, number 34118.
    4. Quibria, M.G., 2020. "Poverty and Policy in the Developing World: Before and After the Pandemic," MPRA Paper 104240, University Library of Munich, Germany, revised 15 Oct 2020.
    5. Yannis Dafermos & Maria Nikolaidi, 2021. "How can green differentiated capital requirements affect climate risks? A dynamic macrofinancial analysis," Working Papers PKWP2105, Post Keynesian Economics Society (PKES).
    6. Ronen Gradwohl & Niklas Hahn & Martin Hoefer & Rann Smorodinsky, 2020. "Reaping the Informational Surplus in Bayesian Persuasion," Papers 2006.02048,
    7. World Bank, . "Taking Stock, July 2020," World Bank Other Operational Studies, The World Bank, number 34268.
    8. Luca Fornaro, 2019. "A Theory of monetary union and financial integration," Economics Working Papers 1677, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2021.
    9. Ofori, Isaac K. & Armah, Mark K. & Asmah, Emmanuel E., 2021. "Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation," MPRA Paper 108619, University Library of Munich, Germany.
    10. Asriyan, Vladimir & Foarta, Dana & Vanasco, Victoria, 2018. "Strategic Complexity When Seeking Approval," Research Papers 3615, Stanford University, Graduate School of Business.
    11. Demombynes,Gabriel, 2020. "COVID-19 Age-Mortality Curves Are Flatter in Developing Countries," Policy Research Working Paper Series 9313, The World Bank.
    12. Francisco Ceballos & Manuel A. Hernandez & Cynthia Paz, 2021. "Short‐term impacts of COVID‐19 on food security and nutrition in rural Guatemala: Phone‐based farm household survey evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 477-494, May.
    13. World Bank, . "South Caucasus and Central Asia - The Belt and Road Initiative," World Bank Other Operational Studies, The World Bank, number 34119.
    14. Cristiana Ioana Șerbănel, 2020. "Best Practices for The Economic Environment During COVID-19," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 500-509, August.
    15. Yothin Jinjarak & Ilan Noy & Quy Ta, 2020. "Pandemics and Economic Growth: Evidence from the 1968 H3N2 Influenza," CESifo Working Paper Series 8672, CESifo.
    16. Ian M. McDonald, 2020. "Macroeconomic Policy to Aid Recovery after Social Distancing for COVID‐19," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 415-428, September.
    17. Mary Grace F. Encila & Dennis V. Madrigal, 2021. "Balancing Work-Family Roles: The Experiences of Solo Parent School Administrators," Technium Social Sciences Journal, Technium Science, vol. 20(1), pages 100-107, June.
    18. Jayson Beckman & Amanda M. Countryman, 2021. "The Importance of Agriculture in the Economy: Impacts from COVID‐19," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1595-1611, October.
    19. Ha,Jongrim & Kose,Ayhan & Ohnsorge,Franziska Lieselotte, 2021. "One-Stop Source : A Global Database of Inflation," Policy Research Working Paper Series 9737, The World Bank.
    20. Amrita Ahuja & Susan Athey & Arthur Baker & Eric Budish & Juan Camilo Castillo & Rachel Glennerster & Scott Duke Kominers & Michael Kremer & Jean Lee & Canice Prendergast & Christopher M. Snyder & Ale, 2021. "Preparing for a Pandemic: Accelerating Vaccine Availability," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 331-335, May.

    More about this item


    COVID-19 pandemic; financial vulnerability; social amelioration;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agy:dpaper:202006. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jat Tancangco (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.