A Temporary Federal Discount Program to Stimulate Consumer Spending

Kenneth Lewis and Laurence Seidman

Business Economics, 2010, vol. 45, issue 4, 244-252

Abstract: In this paper, we evaluate a new proposal to stimulate recovery from the current recession: a temporary federal price discount on consumer goods. An attractive feature of the temporary federal discount program is that it gives consumers a price incentive to purchase more rather than simply giving consumers more disposable income, which they might choose to either spend or to save. According to our simulations with the Fair macro-econometric model, a temporary 20 percent federal discount on all consumer goods in a severe recession would significantly reduce the unemployment rate while causing only a small increase in federal debt as a percentage of GDP.

Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/be/journal/v45/n4/pdf/be201032a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/be/journal/v45/n4/full/be201032a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:buseco:v:45:y:2010:i:4:p:244-252

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11369

Access Statistics for this article

Business Economics is currently edited by Charles Steindel

More articles in Business Economics from Palgrave Macmillan, National Association for Business Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().