Spending Behavior and Economic Impacts of Urban Digital Consumption Vouchers

This paper evaluates the Taipei Bear Vouchers 2.0 program using verified user-level survey data and a regional input-output model to assess the effectiveness of consumption vouchers as a fiscal stimulus tool. We focus on three key behavioral mechanisms: expenditure substitution, induced consumption, and the intensity of treatment through varying voucher face values. Our findings show that voucher effectiveness differs by type. Accommodation vouchers stimulate the most additional spending due to low expenditure substitution and high induced consumption effects, while sports vouchers often replace existing consumption. Increases in voucher value further enhance marginal consumption, especially when this change is a part of unexpected policy. Taking these behavioral responses into account, we find that the output multiplier of the program rises significantly, and indirect benefits extend to untargeted sectors through inter-industry linkages. These results highlight the critical role of consumer behavior in shaping policy outcomes and offer practical guidance for designing more effective and targeted consumption voucher programs.