Grant for Every Citizen: Survey Results of a Direct Government Payment in Israel (with Neomi Feldman)

Abstract: In early August, 2020, during the COVID-19 pandemic, Israel disbursed one-time, universal grants to its citizens, of $220 per adult and $150 per child.  Using survey data, we estimate that 25-45 percent either had already mostly spent or were planning to spend the money by year’s end, and 36-52 percent mostly paid down debts.  Interestingly, about as many people reported either mostly donating the grant or using it to help family or friends as reported saving it (10--18 percent), with donations mostly originating from higher-income respondents. This voluntary rerouting of governmental assistance may help alleviate the trade-off between targeting and simplicity/speed of disbursement.