Consumption Response to Seoul's COVID-19 Shopping Coupons: Evidence from Consumer Data

28 Pages Posted: 28 Aug 2021

See all articles by Seokjin Woo

Seokjin Woo

Myongji University

Sangmin Aum

Myongji University

Dohyung Kim

Myongji University

Heyjin Moon

Seoul Welfare Foundation

Soohyung Lee

Seoul National University

Abstract

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

Suggested Citation

Woo, Seokjin and Aum, Sangmin and Kim, Dohyung and Moon, Heyjin and Lee, Soohyung, Consumption Response to Seoul's COVID-19 Shopping Coupons: Evidence from Consumer Data. Available at SSRN: https://ssrn.com/abstract=3913023 or http://dx.doi.org/10.2139/ssrn.3913023

Seokjin Woo (Contact Author)

Myongji University ( email )

50-3 Namgajwadong
Seodaemungu
Seoul, 120-728

Sangmin Aum

Myongji University ( email )

50-3 Namgajwadong
Seodaemungu
Seoul, 120-728

Dohyung Kim

Myongji University ( email )

50-3 Namgajwadong
Seodaemungu
Seoul, 120-728
Korea

Heyjin Moon

Seoul Welfare Foundation ( email )

Soohyung Lee

Seoul National University ( email )

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