TY  - RPRT
        AU  - Kim, Moon Jung
AU  - Lee, Soohyung
        TI  - Can Stimulus Checks Boost an Economy under COVID-19? Evidence from South Korea
        PY  - 2020/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13567
        UR  - https://www.iza.org/publications/dp13567
        AB  - Various countries have implemented transfer programs to individuals since the Covid-19 outbreaks. However, the extent to which such transfers alleviate economic recessions is unclear. This paper analyzes a South Korean program, which provided vouchers redeemable only at small local businesses. We find that, due to the program, over 30% of households across all income groups increased their food and overall household spending, but the usage restriction may have affected consumer choice, distorting business competition. While the employment and sales of small businesses improved, the program's fiscal sustainability is in question because of the large tax exemption.
        KW  - universal transfers
KW  - stimulus payment
KW  - COVID-19
KW  - consumption
KW  - distortion
        ER  -