A Grant to Every Citizen: Survey Evidence of the Impact of a Direct Government Payment in Israel

During the 2020 COVID-19 recession, Israel disbursed one-time, universal grants of $220 per adult and $150 per child. We ask survey respondents about the grant's primary effect on their situation. Twenty to 45 percent report increasing spending, and 36-52 percent report reducing debts. Importantly, as many respondents report donating or helping friends or family as increasing saving (10-18 percent). While financially weaker respondents reduce debt more, stronger ones not only increase saving but also increase giving - a new finding of nonnegligible, voluntary, decentralized reallocation of governmental assistance. We explore how Israel's political situation and our methodology may have affected our findings, helped by a follow-up US survey.