The housing market in the U.S. is in rude good health as figures released last week show U.S. housing market. This may have something to do with government transfers in recent months? This is almost certainly not an outcome planners were aiming for.
The paper highlighted today reminds policymakers there’s a more effective way to transfer stimulatory cash to the population than simply spraying out cash, a method retailers have been familiar with for centuries; vouchers.
Using data from an experiment conducted earlier in the year in China researchers from JD.com American Technology Corporation and the Stanford University Graduate School of Business showed that payments via vouchers not only get people to spend but a well crafted voucher can produce spending with a multiple of up to 2x the voucher’s face value.
Planners working on the next round of stimulus payments would do well to incorporate this work into their thinking about how best to get money most effectively to where its needed.
Or, they can spray quasi-randomly with the benefits ending up in the prices of Tesla stock or Tulsa condos which is where effects of the last transfers appear presently to be showing up most clearly.
The paper is shorter than the 57-page file suggests. However, there’s some useful reading at the end wonks will enjoy. The merely curious can stop around P.12 and you can access it via this link Vouchers to promote spending.
Happy Sunday.