Data and Code for: Consumer-Financed Fiscal Stimulus: Evidence from Digital Coupons in China

Principal Investigator(s): View help for Principal Investigator(s) Jing Ding, Tongji University; Lei Jiang, Kent State University; Lucy Msall, University of Chicago; Matthew J. Notowidigdo, University of Chicago

Version: View help for Version V1

Name	File Type	Size	Last Modified
replication			02/21/2025 03:00:PM

Project Citation:

Ding, Jing, Jiang, Lei, Msall, Lucy, and Notowidigdo, Matthew J. Data and Code for: Consumer-Financed Fiscal Stimulus: Evidence from Digital Coupons in China. Nashville, TN: American Economic Association [publisher], 2025. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-07-23. https://doi.org/10.3886/E209586V1

Project Description

Summary: In 2020, local governments in China began issuing digital coupons to stimulate spending in targeted categories such as restaurants and supermarkets. Using data from a large e-commerce platform and a bunching estimation approach, we find that the coupons caused large increases in spending of 3.1--3.3 yuan per yuan spent by the government. The large spending responses do not come from substitution away from non-targeted spending categories or from short-run intertemporal substitution. To rationalize these results, we develop a dynamic consumption model showing how coupons' minimum spending thresholds create temporary notches that lead to large spending responses.

Scope of Project

Subject Terms: Bunching; coupon; Fiscal stimulus; COVID; consumer behavior

JEL Classification:
      E21 Macroeconomics: Consumption; Saving; Wealth
      G50 Household Finance: General
      H30 Fiscal Policies and Behavior of Economic Agents: General

Geographic Coverage: China

Time Period(s): 2020 – 2021

Universe: Coupons in three Chinese cities

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Published Versions

V1 [2025-07-23]

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