Consumption Response to Seoul's COVID-19 Shopping Coupons: Evidence from Consumer Data
28 Pages Posted: 28 Aug 2021
This study measures the extent to which Seoul's COVID-19 shopping coupon program affects individuals' consumption. Unlike other COVID-19-related transfer programs, the Seoul Metropolitan government provides consumption coupons depending on income. We quantify the causal effect of Seoul's program by comparing eligible and ineligible groups using a difference-in-differences method. We find that the program increased consumption by 18% while it was ongoing and by 6% afterward. We find substantial heterogeneity in the treatment effects concerning recipients' income and consumption categories.
JEL Classification: H2, H6, D3, D6, L1
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