Consumption, Income Changes, and Heterogeneity: Evidence from Two Fiscal Stimulus Programs

Kanishka Misra and Paolo Surico

American Economic Journal: Macroeconomics, 2014, vol. 6, issue 4, 84-106

Abstract: Almost half of American families did not adjust their consumption following receipt of the 2001 or 2008 tax rebates. Another 20 percent, with low income and more likely to rent, spent a small but significant amount. Households with large spending propensity held high levels of mortgage debt. The heterogeneity is concentrated in a few nondurable categories and a handful of "new vehicle" purchases. The cumulated predictions of the heterogeneous response model tend to be smaller and more accurate than their homogeneous response model counterparts, offering new insights on the evaluation of the two fiscal stimulus programs.

JEL-codes: D12 D91 E21 E32 E62 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/mac.6.4.84
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (158)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/mac.6.4.84 (application/pdf)
http://www.aeaweb.org/aej/mac/data/0604/2013-0147_data.zip (application/zip)
http://www.aeaweb.org/aej/mac/ds/0604/2013-0147_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Consumption, Income Changes and Heterogeneity: Evidence from Two Fiscal Stimulus Programmes (2013)
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:aea:aejmac:v:6:y:2014:i:4:p:84-106

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist

More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().