"Quick Response" Economic Stimulus: The Effect of Small-Value Digital Coupons on Spending

A-Tier
Journal: American Economic Journal: Macroeconomics
Year: 2023
Volume: 15
Issue: 4
Pages: 249-304

Authors (5)

Jianwei Xing (not in RePEc) Eric Yongchen Zou (National Bureau of Economic Re...) Zhentoa Yin (not in RePEc) Yong Wang (not in RePEc) Zhenhua Li (not in RePEc)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study a new consumption stimulus program implemented by a large Chinese city that leverages mobile payment platforms to dispense massive amounts of small-value digital coupons. Exploiting a "rush" design of the dispensing process in which over 1 million program participants compete for coupons on a first-come, first-served basis through a digital portal, we estimate that winning coupons increases weekly out-of-pocket spending by US$3 for every US$1 in government subsidy. Coupon-winning consumers practice intertemporal substitution by moving up purchases that would have been made four months in the future. Customer flow analysis suggests that coupons distort consumption toward pricier options.

Technical Details

RePEc Handle
repec:aea:aejmac:v:15:y:2023:i:4:p:249-304
Journal Field
Macro
Author Count
5
Added to Database
2026-01-29