Income crisis during Covid-19 boosts household spending in Jakarta.
The study looked at how the Covid-19 pandemic affected household spending in Jakarta by analyzing income and consumption data from 2003 to 2020. They found that when income decreases, households tend to spend less in the short term, but eventually adjust their spending according to their long-term income expectations. This means that short-term economic policies can help boost household spending during income crises. The researchers suggest considering inflation rates in future studies to better understand economic conditions.