A GRANT TO EVERY CITIZEN: SURVEY EVIDENCE OF THE IMPACT OF A DIRECT GOVERNMENT PAYMENT IN ISRAEL

Naomi Feldman; Ori Heffetz

doi:10.1086/719449

A GRANT TO EVERY CITIZEN: SURVEY EVIDENCE OF THE IMPACT OF A DIRECT GOVERNMENT PAYMENT IN ISRAEL

Naomi Feldman, Ori Heffetz

Department of Economics

Research output: Contribution to journal › Article › peer-review

5 Scopus citations

Abstract

During the 2020 COVID-19 recession, Israel disbursed one-time, universal grants of $220 per adult and $150 per child. We ask survey respondents about the grant’s primary effect on their situation. Twenty to 45 percent report increasing spending, and 36–52 percent report reducing debts. Importantly, as many respondents report donating or helping friends or family as increasing saving (10–18 percent). While financially weaker respondents reduce debt more, stronger ones not only increase saving but also increase giving — a new finding of nonnegligible, voluntary, decentralized reallocation of governmental assistance. We explore how Israel’s political situation and our methodology may have affected our findings, helped by a follow-up US survey.

Original language	English
Pages (from-to)	229-263
Number of pages	35
Journal	National Tax Journal
Volume	75
Issue number	2
DOIs	https://doi.org/10.1086/719449
State	Published - Jun 2022

Bibliographical note

Publisher Copyright:
© 2022 National Tax Association. All rights reserved.

Keywords

fiscal policy
marginal propensity to spend
politics
stimulus
survey methodology
universal transfers

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1086/719449

Cite this

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A GRANT TO EVERY CITIZEN: SURVEY EVIDENCE OF THE IMPACT OF A DIRECT GOVERNMENT PAYMENT IN ISRAEL

Abstract

Bibliographical note

Keywords

UN SDGs

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