Takahiro Hattori, Norihiro Komura, Takashi Unayama, 28 September 2021

During the rapid spread of COVID-19 in Japan, the Japanese government decided to provide a Special Cash Payment of 100,000 yen per person to all residents as a part of its “Emergency Economic Measures to Cope with COVID-19”. This column uses publicly available survey data to estimate the marginal propensity to consume from the cash transfer in order to assess the impact of the policy. It finds that the payments increased non-negligible consumption mainly due to their size, but the marginal propensity to consume, at around 10 %, is no different from non-pandemic periods. 

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