The Macroeconomic Consequences of Stimulating Offline Consumption during COVID-19

Abstract

This paper analyses the macroeconomic consequences of a fiscal policy implemented in South Korea during COVID-19, 'Korean Economic Impact Payment (KEIP)' program, that aims to stimulate offline consumption. In doing so, we modify a SIR-macro model by explicitly distinguishing online-and offline consumption goods. Benchmark analysis predicts that (1) there are positive effects on key macro variables at the impact while progress of the epidemic hardly changes and (2) the transfer multiplier from the KEIP is estimated to be about 0.5 at the impact, a value with what we expect from the usual neo-classical business cycle model.

RETRACTED ARTICLE: Assessing the role of energy finance, green policies, and investment towards green economic recovery

“…The pandemic has destabilized the economic structure of economies coupled with uncertainties in the world. As a result, governments all over the world have put in place stimulus packages to reduce the cascading effects of the pandemic on their economies (Kim et al 2021;Cui et al 2020). History is replete with fiscal measure policymakers instituted to mitigate the impact of past pandemics, which will serve as pointers to the current pandemic.…”

Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation

“…Many researchers have recently stressed the significance of technological advancement and its function in achieving environmental sustainability. Energy use, according to (Deleidi et al 2020), is critical to economic growth, and their findings in their study of the relationship between energy use and economic growth revealed a positive relationship (Kim et al 2021).…”

Sustaining the future: How green capabilities and digitalization drive sustainability in modern business

“…The GTA is a proactive strategy to combat climate change. Greener manufacturing makes the companies use renewable energy resources that biologically nourish the firm’s FP [ 54 ].…”