IDEAS home Printed from https://ideas.repec.org/p/eti/polidp/20018.html
   My bibliography  Save this paper

Fiscal Responses to the COVID-19 Crisis in Japan: The First Six Months

Author

Listed:
  • Michihito ANDO
  • Chishio FURUKAWA
  • Daigo NAKATA
  • Kazuhiko SUMIYA

Abstract

This paper provides an overview of the Japanese government's response to the COVID-19 crisis in terms of the fiscal measures taken between January and June, 2020. As the crisis intensified, the government passed emergency budgets with a total value exceeding 10% of GDP. One of the main programs was an unconditional cash transfer for households in the amount of 100,000 JPY (i.e., 909 USD) per resident. In addition, to prevent layoffs and bankruptcies, the government created and expanded various loan and subsidy programs to support firms and workers. Other existing social programs and local economic policies are also reviewed.

Suggested Citation

  • Michihito ANDO & Chishio FURUKAWA & Daigo NAKATA & Kazuhiko SUMIYA, 2020. "Fiscal Responses to the COVID-19 Crisis in Japan: The First Six Months," Policy Discussion Papers 20018, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:polidp:20018
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/pdp/20p018.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Shinnosuke KIKUCHI & Sagiri KITAO & Minamo MIKOSHIBA, 2020. "Heterogeneous Vulnerability to the COVID-19 Crisis and Implications for Inequality in Japan," Discussion papers 20039, Research Institute of Economy, Trade and Industry (RIETI).
    2. Willem THORBECKE, 2020. "How the Coronavirus Crisis Affected Japanese Industries: Evidence from the Stock Market," Discussion papers 20061, Research Institute of Economy, Trade and Industry (RIETI).
    3. repec:upd:utmpwp:023 is not listed on IDEAS
    4. Tsutomu Watanabe & Yuki Omori, 2020. "Online Consumption During the COVID-19 Crisis: Evidence from Japan," CARF F-Series CARF-F-487, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ueda, Kozo, 2024. "Household spending responses to two-time COVID-19 payments," Japan and the World Economy, Elsevier, vol. 72(C).
    2. Hoshi, Kisho & Kasahara, Hiroyuki & Makioka, Ryo & Suzuki, Michio & Tanaka, Satoshi, 2022. "The heterogeneous effects of COVID-19 on labor markets: People’s movement and non-pharmaceutical interventions," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    3. Funashima, Yoshito & Hiraga, Kazuki, 2023. "Did the Japanese government’s travel subsidy increase the number of hotel guests and infection during the COVID-19 pandemic?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 1005-1025.
    4. Takaku, Reo & Yokoyama, Izumi, 2021. "What the COVID-19 school closure left in its wake: Evidence from a regression discontinuity analysis in Japan," Journal of Public Economics, Elsevier, vol. 195(C).
    5. Daigo Nakata, 2023. "Emergency Economic Response and Evaluation in the COVID-19 Crisis," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 19(4), pages 1-25, November.
    6. Takahiro Hattori & Motoki Katano, 2020. "Do fiscal policy news shocks affect JGB yield? Evidence from COVID-19," Discussion papers ron334, Policy Research Institute, Ministry of Finance Japan.
    7. Izumi Yokoyama & Reo Takaku, 2024. "How serious was it? The impact of preschool closure on mothers’ psychological distress: evidence from the first COVID-19 outbreak," The Japanese Economic Review, Springer, vol. 75(3), pages 451-471, July.
    8. Kikuchi, Shinnosuke & Kitao, Sagiri & Mikoshiba, Minamo, 2021. "Who suffers from the COVID-19 shocks? Labor market heterogeneity and welfare consequences in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).
    9. Kubota, So & Onishi, Koichiro & Toyama, Yuta, 2021. "Consumption responses to COVID-19 payments: Evidence from a natural experiment and bank account data," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 1-17.
    10. Bessho, S., 2023. "Elections and COVID-19 benefit payments," Journal of Asian Economics, Elsevier, vol. 87(C).
    11. Taiyo Fukai & Hidehiko Ichimura & Keisuke Kawata, 2021. "Describing the impacts of COVID-19 on the labor market in Japan until June 2020," The Japanese Economic Review, Springer, vol. 72(3), pages 439-470, July.
    12. Onjewu, Adah-Kole Emmanuel & Olan, Femi & Nyuur, Richard Benon-be-isan & Paul, Salima & Nguyen, Ha Thanh Truc, 2023. "The effect of government support on Bureaucracy, COVID-19 resilience and export intensity: Evidence from North Africa," Journal of Business Research, Elsevier, vol. 156(C).
    13. Michihito Ando & Masato Furuichi, 2022. "The association of COVID-19 employment shocks with suicide and safety net use: An early-stage investigation," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-26, March.
    14. Thierry Blayac & Dimitri Dubois & Sébastien Duchêne & Phu Nguyen-Van & Bruno Ventelou & Marc Willinger, 2021. "Population preferences for inclusive COVID-19 policy responses," Post-Print hal-03047336, HAL.
    15. Gee Hee HONG & Arata ITO & Thi Ngoc Anh NGUYEN & Yukiko SAITO, 2022. "Did the COVID-19 Pandemic Create More Zombie Firms in Japan?," Discussion papers 22072, Research Institute of Economy, Trade and Industry (RIETI).

    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. Shinnosuke Kikuchi & Sagiri Kitao & Minamo Mikoshiba, 2020. "Who Suffers from the COVID-19 Shocks? Labor Market Heterogeneity and Welfare Consequences in Japan (Forthcoming in the Journal of the Japanese and the International Economies)," CARF F-Series CARF-F-490, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    2. Kikuchi, Shinnosuke & Kitao, Sagiri & Mikoshiba, Minamo, 2021. "Who suffers from the COVID-19 shocks? Labor market heterogeneity and welfare consequences in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).
    3. Toshiyuki MATSUURA & Hisamitsu SAITO, 2021. "Designing a Tourism Stimulus During the COVID-19 Pandemic in Japan," Discussion papers 21012, Research Institute of Economy, Trade and Industry (RIETI).
    4. John Gathergood & Fabian Gunzinger & Benedict Guttman-Kenney & Edika Quispe-Torreblanca & Neil Stewart, 2020. "Levelling Down and the COVID-19 Lockdowns: Uneven Regional Recovery in UK Consumer Spending," Papers 2012.09336, arXiv.org, revised Dec 2020.
    5. Gul Ekinci, 2021. "Covidomics & covidocial impacts:The relation between consumers’ fear of Covid-19, panic spending and saving behavior," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(3), pages 01-23, April.
    6. Olive Umuhire Nsababera & Vibhuti Mendiratta & Hannah Sam, 2023. "The Impact of COVID-19 on Household Welfare in the Comoros: The Experience of a Small Island Developing State," Global Perspectives on Wealth and Distribution, in: Shirley Johnson-Lans (ed.), The Coronavirus Pandemic and Inequality, chapter 0, pages 141-195, Palgrave Macmillan.
    7. Hiroyasu INOUE & Yasuyuki TODO, 2022. "Has COVID-19 Permanently Changed Online Consumption Behavior?," Discussion papers 22018, Research Institute of Economy, Trade and Industry (RIETI).
    8. Koichiro Moriya & Akihiko Noda, 2023. "On the Time-Varying Structure of the Arbitrage Pricing Theory using the Japanese Sector Indices," Papers 2305.05998, arXiv.org, revised Mar 2024.
    9. Francesco Colelli & Edoardo Croci, 2021. "Assessment of environmental and economic benefits of packaging waste system in Italy," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2021(1), pages 37-58.
    10. Willem Thorbecke, 2020. "The Impact of the COVID-19 Pandemic on the U.S. Economy: Evidence from the Stock Market," JRFM, MDPI, vol. 13(10), pages 1-30, October.
    11. Guthrie, Cameron & Fosso-Wamba, Samuel & Arnaud, Jean Brice, 2021. "Online consumer resilience during a pandemic: An exploratory study of e-commerce behavior before, during and after a COVID-19 lockdown," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    12. Çiğdem Sıcakyüz, 2023. "Analyzing Healthcare and Wellness Products’ Quality Embedded in Online Customer Reviews: Assessment with a Hybrid Fuzzy LMAW and Fermatean Fuzzy WASPAS Method," Sustainability, MDPI, vol. 15(4), pages 1-41, February.
    13. Maximiliano Gómez Aguirre & Ariel David Krysa, 2023. "Consumer Loans Dynamics in 2020 in Argentina: An Approach Using Error Correction Models," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(81), pages 111-158, May.
    14. José Gerardo De La Vega Meneses & Claudia Malcón Cervera, 2021. "Aspectos estratégicos en economía digital, comercio electrónico y sistemas de pagos," Revista de Investigación en Ciencias Contables y Administrativas, Universidad Michoacana de San Nicolás de Hidalgo, Facultad de Contaduría y Ciencias Administrativas, vol. 6(2), pages 44-61, July.
    15. Nisrine Essanoussi & Zineb Bennis Nechba, 2022. "The use of online payment in Morocco during COVID19: An analysis of the TAM model by logistic regression [L'utilisation du paiement en ligne au Maroc à l'heure de la COVID19 : Une analyse du modèle," Post-Print halshs-03705130, HAL.
    16. Hoshi, Kisho & Kasahara, Hiroyuki & Makioka, Ryo & Suzuki, Michio & Tanaka, Satoshi, 2022. "The heterogeneous effects of COVID-19 on labor markets: People’s movement and non-pharmaceutical interventions," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    17. Barbara Baarsma & Jesse Groenewegen, 2021. "COVID-19 and the Demand for Online Grocery Shopping: Empirical Evidence from the Netherlands," De Economist, Springer, vol. 169(4), pages 407-421, November.
    18. repec:upd:utmpwp:035 is not listed on IDEAS
    19. Delgado Narro, Ausugto Ricardo & Katafuchi, Yuya, 2020. "COVID-19, state of emergency, and housing market," MPRA Paper 102456, University Library of Munich, Germany.
    20. Hayakawa, Kazunobu & Mukunoki, Hiroshi, 2021. "The impact of COVID-19 on international trade: Evidence from the first shock," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    21. Takahiro Hattori & Motoki Katano, 2020. "Do fiscal policy news shocks affect JGB yield? Evidence from COVID-19," Discussion papers ron334, Policy Research Institute, Ministry of Finance Japan.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:eti:polidp:20018. See general information about how to correct material in RePEc.

    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: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.