Spend as you were told: Evidence from labeled COVID-19 stimulus payments in South Korea

• Main Authors: KIM, KOH, Kanghyock, LYOU, Wonjun
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Income fungibility; COVID-19 stimulus payments; Spending; Card transaction data; Asian Studies; Behavioral Economics; Public Health
• Online Access: https://ink.library.smu.edu.sg/soe_research/2728
• Institution: Singapore Management University

We test the income fungibility assumption from standard economic theory by analyzing spending responses to South Korea’s labeled COVID-19 stimulus payments. We exploit unique policy rules for identification: (1) recipients cannot use payments outside their province of residence, and (2) they can onl...