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

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  • 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
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    References listed on IDEAS

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    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.
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    Cited by:

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    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. 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.
    5. 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).
    6. 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).
    7. 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.
    8. 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.
    9. 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).
    10. 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.
    11. 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.
    12. 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.
    13. Bessho, S., 2023. "Elections and COVID-19 benefit payments," Journal of Asian Economics, Elsevier, vol. 87(C).
    14. 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.
    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).
    16. A.I. Pogorletskiy & N.V. Pokrovskaia, 2021. "Comparative Analysis of Fiscal Regulation Measures of the G20 Countries in the Era of the Coronavirus Crisis and in the Post-Coronavirus Perspective," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 20(1), pages 31-61.

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