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Understanding Consumption Behavior: Evidence from Consumers' Reaction to Shopping Vouchers
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Understanding Consumption Behavior: Evidence from Consumers' Reaction to Shopping Vouchers
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Understanding Consumption Behavior: Evidence from Consumers' Reaction to Shopping Vouchers
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Journal Article
Understanding Consumption Behavior: Evidence from Consumers' Reaction to Shopping Vouchers
2017
Overview
This paper advances our understanding of consumption behavior using the 2009 Taiwan Shopping Voucher Program. This program was universal and well publicized, and its payment to each individual was medium-sized. Based on survey data, it is found that the marginal propensity to consume is about one quarter, which is comparable to findings obtained by previous studies on consumers' response to fiscal stimulus payments. Further, vendors' discounts for voucher users played a significant role in boosting the effectiveness of the program.
