Signal effect of a targeted travel subsidy on consumer behavior during the coronavirus disease 2019 pandemic.

ABSTRACT: Due to the declining demand owing to the coronavirus disease 2019 pandemic, governments worldwide have implemented targeted subsidies to stimulate their domestic demand. This study argues that a single public subsidy implementation has two different mechanisms for demand stimulation: (1) the signal effect and (2) the discount effect. It conducted monthly questionnaire surveys with Japanese consumers during the pandemic and developed a panel dataset. During the data collection, the Japanese government introduced the "go-to-travel" campaign, a typical example of a targeted subsidy. This study utilized this policy implementation and estimated one-way and two-way fixed-effect models. The results show a signal effect, with individuals who were ineligible for the subsidy traveling more after the

SUBMITTER: Tagashira T 

PROVIDER: S-EPMC9797376 | biostudies-literature | 2022 Dec

REPOSITORIES: biostudies-literature