Productivity of firms using relief policies during the COVID-19 crisis

Masayuki Morikawa

doi:10.1016/j.econlet.2021.109869

Productivity of firms using relief policies during the COVID-19 crisis

Econ Lett. 2021 Jun:203:109869. doi: 10.1016/j.econlet.2021.109869. Epub 2021 Apr 20.

Author

Masayuki Morikawa^{1

2}

Affiliations

¹ Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo 186-8603, Japan.
² Research Institute of Economy, Trade and Industry (RIETI), 1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan.

Abstract

This study, based on an original survey of Japanese firms, analyzes the productivity of firms that used relief policy measures during the COVID-19 pandemic. The productivity of firms using these relief measures was lower than that of non-user firms prior to the pandemic, suggesting that inefficient firms have been affected seriously. The result cautions against the excessive and prolonged relief policies.

Keywords: COVID-19; Cleansing effect; Productivity; Reallocation effect; Relief policies.