We estimate the marginal propensity to consume (MBC) of the special monetary payment made in Japan during the COVID-19 pandemic. The MBM is known by exploiting the differences in payment terms between cities that employ publicly and is obtained from the Household Income and Expenditure Survey. . The estimated MPC is about 10 percent, which is no different from those estimated in previous studies conducted during the non-pandemic period. We also estimated the other MBMs through intake subcategories explained on the basis of infection risk, locating that households did not increase their spending on “face-to-face services” while “goods/services purchased at home” and “goods/services purchased in stores”.
This is the English edition of the Japanese discussion paper (21-J-022) with some additional changes.