research product . 2021

The effect of COVID-19 stimulus payments on sales of local small businesses: Quasi-experimental evidence from Korea

Choi, Hoon;
  • Published: 30 Jun 2021
  • Country: Germany
This paper examines how sales of local small businesses can be promoted through COVID-19 stimulus payments. In the beginning of April, 2020, Gyeonggi provincial government in Korea implemented a stimulus payment program worth up to 500 thousand Korean Won (416 US dollars) per person to encourage local consumption. By exploiting unique features of the stimulus payments that restricted the use of the payments in the municipality of residence at establishments accepting local currency, the paper identifies the treatment effect of the stimulus payments, taking a difference-in-difference-in-differences approach. The results suggest that the stimulus payments led to s...
free text keywords: D12 - Consumer Economics: Empirical Analysis, E21 - Consumption ; Saving ; Wealth, H24 - Personal Income and Other Nonbusiness Taxes and Subsidies
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