Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261215 
Year of Publication: 
2022
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 26/2022
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
As part of Germany's fiscal response to the Covid-19 pandemic, parents received three payments totalling e450 per child. Randomization in the payment dates and daily scanner data allow us to identify the effects of these transfers on household spending. We find a significant but small spending effect of the first transfer, with an estimated marginal propensity to consume of about 12%. The effect is higher for low-income and liquidity-constrained households, and in areas with lower infection rates. The second and third payment failed to increase spending. Our results indicate that the child bonus was redistributive rather than stimulative.
Subjects: 
child bonus
Covid-19
fiscal stimulus
household spending
marginal propensity to consume
pandemic
transfer
JEL: 
D12
E21
E62
H24
H31
ISBN: 
978-3-95729-897-3
Document Type: 
Working Paper

Files in This Item:
File
Size
628.95 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.