The Korean Economic Review
Consumption Response to Seoul’s COVID-19 Shopping Coupons: Evidence from Consumer Data (Covid-19 Special Issue)
Seokjin Woo (Myongji University), Sangmin Aum (Kyung Hee University), Dohyung Kim (Myongji University), Heyjin Moon (Seoul Welfare Foundation) and Soohyung Lee (Seoul National University)Year 2022Vol. 38No. 2
AbstractThis 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.