Satisfaction with the COVID-19 Economic Stimulus Policy: A Study of the Special Cash Payment Policy for Residents of Japan

Abstract

The COVID-19 pandemic has caused a recession in the global economy. Many households have been experiencing financial difficulties. In order to curb its ripple effects on households, the Japanese government distributed a one-time cash payment of JPY 100,000 to every registered resident at the beginning of the pandemic. We utilized Hiroshima University’s Household Behavioral and Financial Survey in 2020 and 2021, and found that only 20% of the observations were satisfied with the one-time payment they received. We performed probit regression and found that those who were male, older, had a higher education level, and had anxiety about the future were less likely to be satisfied with this policy. Having a spouse, being a public official, and having higher household assets or better subjective health enhanced satisfaction with the policy. Our subsample analyses showed heterogeneity in satisfaction among various socioeconomic groups and in associations between their socioeconomic characteristics and policy satisfaction. The government should design future policies with due consideration of the challenges faced by various socioeconomic groups.