Finance Papers

Document Type

Journal Article

Date of this Version

10-2013

Publication Source

American Economic Review

Volume

103

Issue

6

Start Page

2530

Last Page

2553

DOI

10.1257/aer.103.6.2530

Abstract

We measure the change in household spending caused by receipt of the economic stimulus payments of 2008, using questions added to the Consumer Expenditure Survey and variation from the randomized timing of disbursement. Households spent 12-30 percent (depending on specification) of their payments on nondurable goods during the three-month period of payment receipt, and a significant amount more on durable goods, primarily vehicles, bringing the total response to 50-90 percent of the payments. The responses are substantial and significant for older, lower-income, and home-owning households. Spending does not vary significantly with the method of disbursement (check versus electronic transfer).

Copyright/Permission Statement

Copyright © 2013 by the American Economic Association.Parker, Jonathan A., Nicholas S. Souleles, David S. Johnson, and Robert McClelland. 2013. "Consumer Spending and the Economic Stimulus Payments of 2008." American Economic Review, 103(6): 2530-53.

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Date Posted: 27 November 2017

This document has been peer reviewed.