Are temporary or permanent income payments better placed to boost demand during Covid-19?

Prabhakar, Rajiv (2022). Are temporary or permanent income payments better placed to boost demand during Covid-19? Basic Income Studies, 17(1) pp. 15–27.

DOI: https://doi.org/10.1515/bis-2020-0022

Abstract

Covid-19 has sparked calls for a universal basic income as a way of coping with a demand shock caused by the pandemic. Temporary income payments have been part of the emergency response to the pandemic. This paper questions the effectiveness of temporary payments as a way to raise demand. Some observers claim that vouchers are better targeted at sectors hit hard by Covid-19 as people may have a tendency to save than spend from temporary payments. There may be a stronger case for permanent rather than temporary payments if the aim is to boost demand in the economy.

Viewing alternatives

Metrics

Item Actions

Export

You can export this page using these formats Digital Object Identifier - DOI