EconPapers    
Economics at your fingertips  
 

The First of the Month Effect: Consumer Behavior and Store Responses

Justine Hastings and Ebonya Washington

American Economic Journal: Economic Policy, 2010, vol. 2, issue 2, 142-62

Abstract: Previous research has demonstrated that benefit recipients decrease expenditures on, and consumption of, food throughout the benefit month. Using detailed grocery store scanner data, we ask two questions: whether cycling is due to a desire for variety that leads to within-month substitution across product quality, and whether cycling is driven by countercyclical retail pricing. We find that the decrease in food expenditures is largely driven by reductions in quantity, not quality, and that prices for foods purchased by benefit households vary pro-cyclically with demand, implying that households could save money by delaying their food purchases until later in the month. (JEL D12, I38)

JEL-codes: D12 I38 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/pol.2.2.142
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/pol.2.2.142 (application/pdf)
http://www.aeaweb.org/aej/pol/data/2008-0139_data.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: The First of the Month Effect: Consumer Behavior and Store Responses (2008) Downloads
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:aejpol:v:2:y:2010:i:2:p:142-62

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

Access Statistics for this article

American Economic Journal: Economic Policy is currently edited by Matthew Shapiro

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

 
Page updated 2020-08-08
Handle: RePEc:aea:aejpol:v:2:y:2010:i:2:p:142-62